Glossary
ALL-OR-NONE ORDERS
Limit orders that are executed for the entire quantity only and remain in the Order Book until they are filled.
ASK PRICE
Price of a sell order.
AUCTION
Procedure for making transactions after a period of time during which the orders entered by exchange members in the order book are accumulated but not executed. The price determination algorithm aims at optimising the total welfare, i.e. the seller surplus, the buyer surplus and the congestion rent (if applicable).
BALANCE RESPONSIBLE (PARTY)
Legal entity obligated to pay a TSO for the after-the-fact Imbalances of a grid-user coming within the Balance Responsible’s Perimeter.
BALANCE RESPONSIBLE AGREEMENT
All contractual agreements between the transmission system operator and the grid user regarding the settlement of power imbalances recorded on balance perimeters.
BALANCE RESPONSIBLE PERIMETER
Energy account which the transmission system operator keeps for every user of the system. This system is in accordance with a balance area agreement. In the account feeding, withdrawals and the transfer of energy to other balance areas (schedule) are booked in order to establish the deviation in the energy balance of every user.
BALANCING MARKET
Market managed by TSOs in order to guarantee the availability of power reserves in D-1 and intra day to ensure global supply-demand balance in real time.
BASELOAD
Characterises the type of load for the delivery of electricity or the procurement of electricity with a constant output over 24 hours of each day of the delivery period.
BID
Document by which the member submits the price and the quantity for which it seeks to make a Transaction. Orders are binding buy or sell orders.
BID PRICE
Price of a buying order.
BLOCK ORDER
Combination of single hours which depend on each other for their execution. On the auction, all block orders can only be either executed fully, or rejected fully.
BUYER SURPLUS
Difference between the submitted price and the market price, multiplied by the quantity actually purchased.
CLEARING
Financial and physical settlement of transactions.
CLEARING HOUSE
An institution which acts as a central counterparty for transactions (CCP). The clearing house organises the accounting of receivables and liabilities, the delivery and the collateralisation of the transactions.
CLEARING MEMBER
Participant in the clearing procedure endowed with a clearing license.
CONGESTION RENT
Price difference between two markets linked by market coupling arising when there is congestion on the border.
CONTINUOUS TRADING
Unlike in an auction, orders may be executed as soon as they are placed in the order book. Competing orders in the order book are prioritised firstly by their price and then by their time stamp.
CURTAILMENT
Imbalance of purchase and sale leading to extreme prices on the Auction Segment.
DAY-AHEAD MARKET
Part of the spot market where a commodity is tradable one day before delivery.
DELIVERY
Injection or withdrawal of electricity on a delivery area pursuant to a transaction.
DELIVERY AREA
Power transportation grid managed by a TSO.
ECC
European Commodity Clearing AG. Central counterparty for all transactions effected on EPEX Spot.
EXCHANGE MEMBER
Legal entity that has signed a Trading Agreement with EPEX Spot SE.
EXCHANGE RULES
Part of the Rules and Regulations of EPEX Spot that sets forth the terms on which EPEX Spot SE carries out its duties and on which Exchange Members trade in the market.
EXCHANGE TRADER
Person authorised to trade in the name of an Exchange Member.
FUTURES CONTRACT
Standardized contract between two parties to buy or sell a specified asset of standardized quantity and quality at a specified future date at a price agreed today.
ICEBERG ORDER
Buy or sell order which is specified by means of its limit, total quantity and peak quantity. The Iceberg Order is placed in the order book in partial orders to the amount of the peak quantity. As soon as a partial order has been executed, a new partial order to the amount of the peak quantity is placed in the order book. This process is repeated until the total quantity of the Iceberg Order is executed.
IMBALANCES SETTLEMENT
Balance responsible parties are held financially liable ex post of any imbalance registered within their balance perimeter.
INITIAL MARGINING
Cash or securities which the Clearing Member has to deposit with the clearing house and which the Non-Clearing Member has to deposit with its Clearing Member. The initial margin covers the intra-day risk from spot market transactions on power.
INJECTION
Power produced or declared to the TSO and included as a positive figure in the calculation of the Balance Responsible Imbalance.
INTRADAY MARGIN
Additional margin which has to be deposited in the course of an exchange trading day in highly volatile market situations.
LIMIT ORDER
Buy or sell order which is entered with a position limit; it is executed at this limit or at a better limit.
MARKET CLEARING PRICE
Synonym for auction price. The market clearing price corresponds to the intersection between the aggregated supply and demand curve.
MARKET COUPLING
Market coupling allows the matching of power exchanges orders and the implicit allocation of the available cross-border capacities received from the Transmission System Operators (TSOs).
MATCHING
Combination of two compatible opposite orders that leads to a Transaction.
MCP
Abbreviation for market clearing price.
MISTRADE
A transaction which was effected as a result of a mistake.
NOMINATION
Daily declaration of power supply, of purchase and sale or of imports and exports made to the TSO by the Balance Responsible Party. Physical delivery of transactions is fulfilled by means of reporting schedules/nominations to the TSO.
NON-CLEARING-MEMBER
Exchange member which has concluded a “NCM agreement” with a clearing member and is approved as a trading participant by ECC.
OPERATIONAL RULES
Part of the Rules and Regulations of EPEX Spot that sets forth the Contracts details and trading parameters, General Services Conditions, Price List and Technical Access Rules.
ORDER
Document by which the member submits the price and the quantity for which it seeks to make a Transaction. Orders are binding buy or sell orders.
ORDER BOOK
Centralisation by the Trading System of buy and sell Orders and ranking based on the execution priority determined by the matching algorithm.
OTC
Abbreviation for "Over-The-Counter". An OTC contract is a bilateral contract in which two parties agree on how a particular trade or agreement is to be settled in the future.
OTC CLEARING
Service offered by exchanges. OTC transactions which correspond in their contract specification to exchange transactions can be registered. In this case clearing and settlement of the OTC transactions will be done by the respective clearing house.
PEAKLOAD
Characterizes the load type for the delivery or procurement of electricity at a constant load over 12 hours from 08:00 am until 08:00 pm on every working day (Monday to Friday) during a delivery period.
PHELIX
Phelix means Physical Electricity Index. Calculated on a daily base by EPEX Spot, the Phelix is the average price for base load (Phelix Day Base) and peak load (Phelix Day Peak) electricity traded on the German/Austrian Auction.
PHYSICAL FULFILMENT
Exchange members can ask for the physical fulfilment of futures positions held with EEX Power Derivatives by buying or selling on the corresponding auction the underlying of the futures contract.
PRICE INELASTIC BIDS
Orders to be executed whatever the market price.
SCHEDULE
Daily declaration of power supply, of purchase and sale or of imports and exports made to the TSO by the Balance Responsible Party. Physical delivery of transactions is fulfilled by means of reporting schedules/nominations to the TSO.
SELLER SURPLUS
Difference between the submitted price and the market price, multiplied by the quantity actually sold.
SPOT MARKET
Market on which transactions regarding products are concluded and/or registered which are settled within a period of two settlement days. Settlement can take place immediately (intraday), the following day (day-ahead) or two days ahead.
SPREAD
The price range between best bid and best ask is called spread.
TRADE
Outcome of the matching of buy and sell orders.
TRADING SYSTEM
Electronic system operated by EPEX Spot SE that allows Exchange Members to trade on EPEX Spot Market Segments.
TRANSMISSION SYSTEM OPERATOR
Entity in charge of operating the power transportation grid of a given delivery area.
TSO
Shortcut for Transmission System Operator.
WITHDRAWAL
Power consumed or declared to the TSO and included as a negative figure in the calculation of the Balance Responsible Imbalance.
