SEEPEX will run a daily auction using EPEX Trading System as trading system. ETS was progressively deployed in the French, German/Austrian and Swiss markets of EPEX SPOT and in the Hungarian market operated by EPEX on behalf of HUPX. At present more than 200 different companies use ETS on a daily basis and more than 920 users are connected to the system.

The implementation of quite similar systems and procedures in Serbia could really facilitate the establishment of truthful relationships between SEEPEX and its members (who will be already familiar with them, at least for most of them) which will have access to this new market easily.

The GCT is set at 10.15 am subject to final confirmation with members.

SEEPEX will start with hourly products. Block products will be introduced later when the liquidity allows it.

The market will be opened 7 days a week.

Trading will be handled in Euro.

Pmin will be set at 0.0€ and Pmax at 3000€. At the start-up of SEEPEX, there will be no negative price.

Traders already certified by EPEX SPOT are automatically certified by SEEPEX. However, they are invited to take part to training organized by SEEPEX in order to be aware of specific procedures.

The Serbian power market has already a good level of cross-border and OTC liquidity and strong development potential considering its excellent geographical position.

With more than 45 Balance Responsible Parties registered with EMS as of June 2015, we expect to reach 10 % of Serbian power consumption soon after the launch.

The success of a power exchange relies on the trust it gets from the trading community. That’s why SEEPEX will implement organization, team, systems and procedures to build a reliable price reference.

SEEPEX will be only responsible for the trading activity. Clearing will be outsourced to a competent entity in order to ensure a right management of the financial risk of payment and delivery of transaction and to comply with the Serbian legal/regulatory framework and main international principles on clearing.

ECC will be the central-counterparty of SEEPEX market and will ensure clearing and settlement.

An exchange member could be cleared by any existing ECC Clearing Member. A list of ECC Clearing Members and contact details is available on the ECC website.

Reliable price / no discrimination / transparency / financial security

Organized markets provide an infrastructure where all orders are concentrated to determine optimal prices. The resulting market prices are indeed more relevant than those emanating from one single transaction between two parties. As the organized market concentrates market liquidity, a matching order can much more easily be found than without this infrastructure offered by the exchange.

The rules to trade on a power exchange are public and are the same for any exchange member. This guarantees transparency to access to the market and thus a reliable price formation. In this way, the price can be used as a reference by all the market parties.

Centralized settlement with a central counterpart (the clearing house) will enhance financial security to the market players and lower the financial and counter-party risks.

The platform and services rendered by SEEPEX will reinforce the ongoing European integration projects, which leads to more efficient use and investments in power in Europe, benefitting both end consumers and direct members of the exchanges. SEEPEX will look for harmonising its systems and processes as much as possible with the ones implemented by EPEX on its own markets in order to decrease the transaction costs for its future market participants and ease the integration of SEEPEX into European initiatives such as the PCR.

• Transparent and reliable price reference for Serbian day-ahead power market;

• Harmonisation of market rules and processes with Western European standards;

• Harmonisation of the trading and clearing systems at the European scale

• Non-discriminatory trading;

• Enhancement of supply competition in Serbia by giving the market participants a new tools to manage their portfolio;

• Simpler administration;

• High-quality solution based on best European practices.

Market participants welcome on the emergence of an organized market in a country and especially when the trading and clearing practices are as much as possible harmonized with existing practices and processes. The reactions are positive all the more so because we intent to answer the needs of the whole market community when launching SEEPEX.

In compliance with the European Target Models for the establishment of an Internal Energy market, Serbia will be coupled with its neighbors. The localization of Serbia is interesting in a regional perspective as cross-border trading is active. Market coupling will sustain the development of the exchange for the benefits also of the market participants.

Besides, market coupling should be facilitated by the use of ETS as trading platform - since it is already compatible with PCR assets - and thanks to the experience of EPEX SPOT in market coupling. The 4MMC could be a natural step.

However, no timeframe can be communicated at the moment.

The first discussions to join other ongoing coupling projects have already started, with preliminary contacts on TSO/regulatory level in order to couple Serbia in a timely manner.