EEX Technology Update

Copyright 2014 – All rights reserved

Torben Bäumlein, Rob Palmer

Agenda

1. EEX connectivity overview update

2. EEX TT Screen

3. ISV Concept

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EEX - Technical Connections

(until 2014-12)

Power Gas Emission/GOO Coal

EEX – Connectivity

current status

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EEX – Connectivity

outlook – short term

M em ber TGW Trading Technologies WebAccess FIXML Clearing O O O O (E)MDI/RDI ETI/FIX Trading AMQP ETS (PWX) ComXerv / M7 S D S GV Portal Exchange LINK EEX

Power Gas Emission/GOO Coal CLTX

S D

API

D Derivatives S Spot O OTC A Auction

ETS (EPEX) Eurex A Agricultural Eurex Clearing GUI O O O O T7 GUI O O O D D D S ISV (3rd Party) e.g. EET O O O D D D D S S A Gas Direct Screen D S Integrated GlobalVision front end D D S S ComTrader / M7 Front end D S EEX TT Screen D D D S EPEX Spot Trader Client A D D D D O O O

ISV (3rd Party)

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ISV – developed trading software provided to trading firms to trade exchange products.

Multi-member Service Provider - Provides fully hosted connection to exchange servers.

functions

• Generally covers all trading, trade registration and clearing functionalities. We can provide specific details.

accessible

• only via VPN or Leased Line

• AMQP (ComXerv) also via internet

asset classes

• Power, Gas (only clearing), Coal, Emissions, GoOs and Agricutural products • CLTX products

Current vendors

ISV (3rd Party)

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Our aim is to open up as many channels as possible into the exchange.

Allowing access via 3rd Party ISV’s removes barriers, an creates and easier route

to market for some potential customers.

Working with 3rd Party ISV’s introduces the exchange to new customers.

Two streamlined forms, one for “Front End Screen” and one for Service Provider. EEX request unique EEX ID for ISV and Service Provider from DBAG – in the event of an existing Eurex Service Provider ID this can be utilized for EEX. Approved ID’s are added into the Simulation environments of T7 and Eurex Classic.

EEX perform product and limit assignment in Simulation environments of T7 and Eurex Classic.

Logins in Simulation environments of T7 and Eurex Classic created and distributed.

Certificate and Key creation.

ETI sessions can be ordered via the Eurex Member Portal for those with access or alternatively by EEX Customer Connectivity.

How a customer can connect to the exchange

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Potential saving benefit for new customers infrastructure costs of keeping incumbent screen.

Familiarity of using an incumbent screen.

Greater competition and choice for new customers.

Utilization of existing trade flow into respective middle & back office systems.

Increased benefit to existing customers comes from new members creating further liquidity and tighter markets.

Advantages for Customers, existing and

Potential

Promote our frequent surges in volume to prospects that use 3rd Party ISV’s

The ISV concept is not a profit centre for the exchange set up is done at cost, it is a tool to increase liquidity

The vendor can attract new customers via connection to the exchange Joint marketing with 3rd Party ISV’s

Contact Details Rob Palmer

[email protected] or https://www.eex.com/en/access/frontends +44 207 862 7562

Straight Through Processing (STP)

ECC Clearing

OTC Trading

Exchange Registration

STP bridges over-the-counter trading at brokers with

trade registration on a regulated market and clearing

NCM A

Portfolio

NCM B

Portfolio

Clearing

Member A

Clearing

Member B

Member A

Member B

Broker

eXRP /

Trayport

Benefits of Straight-Through Processing

Eliminates manual

re-entry

of trade

details already captured in the broker

system

Reduced effort for brokers

Reduced risk for clients

Reduces the need for manual

confirmation

of trade details already

confirmed in the broker system

Reduced risk for brokers

Reduced effort for clients

Reduces cycle-time

from trading on

broker venue to clearing confirmation

by ECC

Reduced risk for brokers

Reduced risk for clients

The broker can choose to bear the risk of an open

position – or not – as per contract with it’s client

Scenario 1: „Direct“ trade side (Broker does not bear risk of holding a position)

ECC Clearing Exchange Registration

NCM

Portfolio

Scenario 2: „Give-up“ trade side (Broker bears risk of holding a position)

ECC Clearing Exchange Reg.

NCM

Portfolio

► Position is directly opened on NCM account, once the trade is approved by NCM (and the other side is

approved*)

► Approval can be automated

► Position is automatically opened on the broker’s account (once the other side is approved* too) and given-up to the NCM for take-up

► Take-up can be automated

Per side of the trade the broker stipulates whether it is to be processed as „Direct“ or as „Give-up“ by the STP solution.

Three STP Options

19

“Screen Trades” ► All trades executed on Screen by the trader are automatically

confirmed.

“Always” ► All trades are automatically confirmed regardless of execution.

“Never (Opt-out)” ► Automatic Confirmation functionality is completely deactivated ► All deals will therefore require manual confirmation

Low STP High STP

Trading participants must check all trades registered and submitted to the ECC clearing system, not later than the start of the next trading day. Objections can be raised with EEX Market Supervision.

Automatic Confirmation settings can be adjusted as

required through ECC Form T08

One Electronic Process ► All trades can be entered by the broker through the STP solution ► Buy and sell side can be independently processed as:

► direct entry on counterparty account ( approval)

► entry on broker account and give-up ( take-up)

► EFETnet eXRP and Trayport© Hosted Clearing LinkSM _{operate via}

a single electronic portal and process

Summary

STP _{► Possibility for clients to select STP Option via ECC T-08 form.}

Thank you very much for your attention.

Torben Bäumlein Rob Palmer

Customer Connectivity & Trading Systems Sales ISVs Phone +49 341 2156 465 +44 207 862 7562 E-Mail [email protected] [email protected]

Customer Connectivity & Trading Systems - Hotline

Phone +49 341 2156 466 E-mail [email protected]

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Detail slides

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1. Functions

• Covers all clearing functionalities • For future products

2. Accessible

• With token (old) or certificate (new) • With a current browser

3. Asset classes

• Power, Gas, Coal, Emission, GoOs and Agricultural products • CLTX products

Eurex Clearing GUI

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1. Functions

• Covers all trading and trade registration functionalities • For futures products

2. Accessible

• Via Internet or leased line

• Public private key pair required (only via internet) • Current Java version needed

3. Asset classes

• Power, Coal, Emission, GoOs and Agricultural products

T7 GUI

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1. Functions

• Covers all trading functionalities

2. Accessible

• .NET Framework 4.0 and Visual C++ 2010 Service Pack 1 x86 re-distributable needed

3. Asset classes

Gas Direct Screen

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1. Functions

• Covers not all trading functionalities

2. Accessible

• Via internet, VPN or leased line

3. Asset classes

• Power, Gas, Coal, Emission and GoOs

Integrated GlobalVision front end

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1. Functions

• Covers all trading functionalities for spot products and auctions • Covers clearing functionalities:

• OTC/EFP Trade Entry

• Give-up and Take-up functionalities • Position Overview

• Position Detail Overview • Trade Separation

• Close out

2. Accessible

• Via internet, VPN or leased line • Current Java version needed

3. Asset classes

• Power (trading), Gas, Coal, Emission, GoOs and Agricultural products • CLTX products

ComTrader