Finanstilsynet Adjusts Position Limits for the Commodity Derivative German Power Due to the Bidding Zone Split of the German-Austrian Power Market

finanstilsynetThe German and Austrian energy regulators have decided to split the single German-Austrian bidding zone for electricity into two national bidding zones as from 1 October 2018.

Up until the split the reference price for the “German Power Base Load” and “German Power Only Basic Load” contracts, which are listed on Nasdaq Oslo ASA, has been the German-Austrian electricity price, and the two contracts have therefore had the same position limits. After the split the contracts will not have the same reference price, and separate position limits will be set for each contract.

Finanstilsynet accordingly issued on 28 September regulations amending the regulations of 20 December 2017 on position limits for commodity derivatives. The amendment regulations set separate position limits for the German Power Base Load contract and the German Power Only Base Load contract. The percentage used to calculate the position limits for the spot month and other months respectively will remain unchanged.

The freight commodity derivatives Capesize 4 Timecharter Average, Capesize 5 Timecharter Average, Panamax 4 Timecharter Average and Supramax 6 Timecharter Average will be delisted from Nasdaq Oslo ASA as from 1 October 2018. Finanstilsynet will accordingly no longer set position limits for those contracts.

The amendment regulations enter into force on 1 Ocober 2018.