The Energy Derivatives Market in Greece was established in 2020, with the approval of the Hellenic Capital Market Commission. The organization and support of its transactions is carried out by HENEX S.A., while the clearing of transactions is carried out by ATHEXClear, one of the member companies of the Hellenic Stock Exchange Group.
Within the context of the Energy Financial Market (Futures Market), Futures Contracts are traded. Futures contracts concern the exchange of electricity by specifying the time, quantity and price of the transaction and can be concluded either bilaterally (Over-The-Counter), or through an organized Energy Exchange (Forward Market).
In the Forward Market, electricity is traded in the medium term. In a futures or forward contract, the parties agree on a price to sell electricity in the futures (e.g. year x + 1 or x + 2). Futures are standardized contracts that can be further traded on energy exchanges, while Forwards are mostly bilateral contracts that are usually not further traded. Futures markets allow market parties to hedge their price risks. Futures contracts can be traded within and between market zones.
The futures market allows participants to limit their exposure to the relatively volatile intraday market by hedging their position and contributes to long-term strategies such as planning generation, transmission and distribution systems, and demand response investments by indicating long-term expectations for hourly market prices.
The futures market is a useful tool for participants to mitigate their exposure to price volatility in markets, where there is a physical delivery obligation.