APX-ENDEX
Encyclopedia
APX-ENDEX is an Anglo-Dutch energy exchange operating the spot
and derivatives
markets for electricity
and natural gas
in the Netherlands
, the United Kingdom
, and Belgium
. Established in 1999, APX-ENDEX provides exchange trading, central clearing and settlement
, and data distribution services as well as benchmark data and industry indices. APX-ENDEX has over 340 members from more than 15 countries. In 2009, a total volume of 412 TWh
of energy was traded or cleared by APX-ENDEX, of which derivatives markets recorded a total of 210 TWh while spot markets had a total volume of 202 TWh.
APX-ENDEX offices are located in Amsterdam
, Brussels
, London
, and Nottingham
.
owning and operating nine energy exchange markets in the Netherlands, the United Kingdom, and Belgium, five spot markets and four derivatives markets. APX-ENDEX comprises APX ENDEX Holding B.V., APX ENDEX Gas B.V., APX ENDEX Power B.V., APX Commodities Ltd, APX ENDEX Derivatives B.V. and Belpex N.V. , the Belgian power exchange. In addition, the APX-ENDEX provides third-party services for the clearing and delivery of energy or energy-related products such as carbon trading and auctioning.
The shareholders of APX-ENDEX are TenneT Holding B.V, N.V. Nederlandse Gasunie, Elia and Fluxys Europe S.A.
in Continental Europe
. At the same year the Europe's first screen-based spot market for trading in wholesale gas, EnMO (now APX Gas UK), was launched in the United Kingdom. In 2000, the UK's first independent power exchange UKPX (now APX Power UK) was established followed by launch of APX-UK electricity spot market in 2001. In 2003, APX expanded towards the UK by acquisition of EnMO and APX-UK (including the brand name APX which was introduced for operations in all countries). UKPX was acquired by APX one year later.
The European Energy Derivatives Exchange N.V. (ENDEX N.V.) was launched in 2002 by a number of energy companies. ENDEX was acquired by APX Group in 2008 and the integration was completed in 2009. After merging the APX Group and ENDEX a new name APX-ENDEX and new logo were introduced.
In 2003, Title Transfer Facility
(TTF), a virtual trading point
for natural gas in the Netherlands, was established by Gasunie. In 2005, APX and Gas Transport Services B.V., a subsidiary of Gasunie, launched the Dutch TTF market (APX Gas NL). Launch of Belgian Zeebrugge Hub
gas exchange (APX Gas ZEE) in association with the Belgian gas transmission system operator
Fluxys
followed at the same year. In 2006, all APX Group power and continental gas markets introduced the EuroLight trading platform.
In 2001, the Netherlands transmission system operator
TenneT
acquired full ownership of Amsterdam Power Exchange and in 2002 Amsterdam Power Exchange was renamed APX. In 2006, TenneT sold 25.5% of shares in APX Group to Gasunie. Fluxys became the third shareholder of APX Group in March 2008 when Fluxys acquired 2.68% of APX Group shares from TenneT.
In 2005, APX became a shareholder of Belgian power exchange Belpex SA. 19 April 2010, APX-ENDEX and Belpex announced that they will integrate their activities and Belpex is becoming a part of APX-ENDEX. APX-ENDEX will acquire all shares in Belpex while Belpex main shareholder Elia System Operator
, an electricity transmission system operator of Belgium, will have a 20% stake in APX-ENDEX.
In 2006, trilateral market coupling (TLC) between the Netherlands, Belgium and France was implemented. For the coupling of the British power market, APX signed an agreement in 2007 to develop BritNed
power cable between the United Kingdom and the Netherlands. The cable is to be finalised in 2011.
On 25 May 2010, APX-Endex announced a plan to expand to the carbon emissions trading market and to acquire a majority stake in the Climex carbon emissions trading platform owned by TenneT and Rabobank
.
On 9 June 2010, APX-ENDEX, Belpex and Nordic power exchange Nord Pool Spot
agreed to create a cross-border intraday electricity market based on Nord Pool Spot's Elbas technology; the European Market Coupling Company
. The common intraday market will include the Nordic countries, Germany, the Netherlands and Belgium.
Spot market
The spot market or cash market is a public financial market, in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market in which delivery is due at a later date...
and derivatives
Derivatives market
The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets....
markets for electricity
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
and natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
in the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, and Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
. Established in 1999, APX-ENDEX provides exchange trading, central clearing and settlement
Clearing house (finance)
A clearing house is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions...
, and data distribution services as well as benchmark data and industry indices. APX-ENDEX has over 340 members from more than 15 countries. In 2009, a total volume of 412 TWh
TWH
TWH or twh could refer to:*Tennessee Walking Horse, a breed of horse* Toronto Western Hospital, a hospital in Toronto, Canada* TWH Bus & Coach, a bus company in Romford, England* Terrawatt-hour, measure of electrical energy, 1012 watt-hours...
of energy was traded or cleared by APX-ENDEX, of which derivatives markets recorded a total of 210 TWh while spot markets had a total volume of 202 TWh.
APX-ENDEX offices are located in Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
, Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, and Nottingham
Nottingham
Nottingham is a city and unitary authority in the East Midlands of England. It is located in the ceremonial county of Nottinghamshire and represents one of eight members of the English Core Cities Group...
.
Organization
APX-ENDEX is a holding companyHolding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
owning and operating nine energy exchange markets in the Netherlands, the United Kingdom, and Belgium, five spot markets and four derivatives markets. APX-ENDEX comprises APX ENDEX Holding B.V., APX ENDEX Gas B.V., APX ENDEX Power B.V., APX Commodities Ltd, APX ENDEX Derivatives B.V. and Belpex N.V. , the Belgian power exchange. In addition, the APX-ENDEX provides third-party services for the clearing and delivery of energy or energy-related products such as carbon trading and auctioning.
The shareholders of APX-ENDEX are TenneT Holding B.V, N.V. Nederlandse Gasunie, Elia and Fluxys Europe S.A.
History
In May 1999, trading started at the Amsterdam Power Exchange (APX), the predecessor of APX-ENDEX. It was the first electricity exchange marketElectricity market
In economic terms, electricity is a commodity capable of being bought, sold and traded. An electricity market is a system for effecting purchases, through bids to buy; sales, through offers to sell; and short-term trades, generally in the form of financial or obligation swaps. Bids and offers use...
in Continental Europe
Continental Europe
Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands....
. At the same year the Europe's first screen-based spot market for trading in wholesale gas, EnMO (now APX Gas UK), was launched in the United Kingdom. In 2000, the UK's first independent power exchange UKPX (now APX Power UK) was established followed by launch of APX-UK electricity spot market in 2001. In 2003, APX expanded towards the UK by acquisition of EnMO and APX-UK (including the brand name APX which was introduced for operations in all countries). UKPX was acquired by APX one year later.
The European Energy Derivatives Exchange N.V. (ENDEX N.V.) was launched in 2002 by a number of energy companies. ENDEX was acquired by APX Group in 2008 and the integration was completed in 2009. After merging the APX Group and ENDEX a new name APX-ENDEX and new logo were introduced.
In 2003, Title Transfer Facility
Title Transfer Facility
The Title Transfer Facility, more commonly known as TTF, is a virtual trading point for natural gas in the Netherlands. Set up by Gasunie in 2003, it is almost identical to the National Balancing Point in the United Kingdom and allows gas to be traded within the Dutch network. The TTF is operated...
(TTF), a virtual trading point
Virtual trading point
Articles on Virtual trading point include:* National Balancing Point * Title Transfer Facility * Zeebrugge Hub...
for natural gas in the Netherlands, was established by Gasunie. In 2005, APX and Gas Transport Services B.V., a subsidiary of Gasunie, launched the Dutch TTF market (APX Gas NL). Launch of Belgian Zeebrugge Hub
Zeebrugge Hub
The Zeebrugge Hub is the natural gas virtual trading point in Zeebrugge, Belgium. It is connected to the National Balancing Point via the Interconnector....
gas exchange (APX Gas ZEE) in association with the Belgian gas transmission system operator
Transmission system operator
File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumersrect 2 243 235 438 Power stationrect 276 317 412 556 Transformer...
Fluxys
Fluxys
Fluxys is a Belgium-based company, mainly acting as a natural gas operator. In 2004, it employed around 850 people and its infrastructure comprised about 3,700 km of pipelines and a terminal in Zeebrugge, Belgium...
followed at the same year. In 2006, all APX Group power and continental gas markets introduced the EuroLight trading platform.
In 2001, the Netherlands transmission system operator
Transmission system operator
File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumersrect 2 243 235 438 Power stationrect 276 317 412 556 Transformer...
TenneT
TenneT
TenneT B.V. is the national electricity transmission system operator of the Netherlands, headquartered in Arnhem. Controlled and owned by the Dutch government, it is responsible for overseeing the operation of the 380 and 220 kV high-voltage grid throughout the Netherlands and its...
acquired full ownership of Amsterdam Power Exchange and in 2002 Amsterdam Power Exchange was renamed APX. In 2006, TenneT sold 25.5% of shares in APX Group to Gasunie. Fluxys became the third shareholder of APX Group in March 2008 when Fluxys acquired 2.68% of APX Group shares from TenneT.
In 2005, APX became a shareholder of Belgian power exchange Belpex SA. 19 April 2010, APX-ENDEX and Belpex announced that they will integrate their activities and Belpex is becoming a part of APX-ENDEX. APX-ENDEX will acquire all shares in Belpex while Belpex main shareholder Elia System Operator
Elia System Operator
Elia System Operator SA is an electric power transmission system operator of Belgium.-History:Elia was created as a result of the legal unbundling in the electricity market. On 28 June 2001, Elia became the independent limited liability company. It was appointed as the federal transmission system...
, an electricity transmission system operator of Belgium, will have a 20% stake in APX-ENDEX.
In 2006, trilateral market coupling (TLC) between the Netherlands, Belgium and France was implemented. For the coupling of the British power market, APX signed an agreement in 2007 to develop BritNed
BritNed
BritNed is a high-voltage direct-current submarine power cable between the Isle of Grain in Kent, the United Kingdom, and Maasvlakte in Rotterdam, the Netherlands.-History:...
power cable between the United Kingdom and the Netherlands. The cable is to be finalised in 2011.
On 25 May 2010, APX-Endex announced a plan to expand to the carbon emissions trading market and to acquire a majority stake in the Climex carbon emissions trading platform owned by TenneT and Rabobank
Rabobank
Rabobank is a financial services provider with offices worldwide. Their main location is in the Netherlands. They are a global leader in Food and Agri financing and in sustainability-oriented banking...
.
On 9 June 2010, APX-ENDEX, Belpex and Nordic power exchange Nord Pool Spot
Nord Pool Spot
Nord Pool Spot runs the largest market for electrical energy in the world, measured in volume traded and in market share. It operates in Norway, Denmark, Sweden, Finland, and Estonia. More than 70% of the total consumption of electrical energy in the Nordic market is traded through Nord Pool...
agreed to create a cross-border intraday electricity market based on Nord Pool Spot's Elbas technology; the European Market Coupling Company
European Market Coupling Company
European Market Coupling Company, EMCC or emcc, is a provider of congestion management services for cross-border electrical interconnectors...
. The common intraday market will include the Nordic countries, Germany, the Netherlands and Belgium.