The TGE issued a communication regarding the OTF Trading Platform, May 4 this year. is the first day of listing on the Organized Trading Platform operated by the Polish Power Exchange. According to the issued article, the launch of OTF does not change the way of trading on the electricity and gas spot markets on the commodity exchange and trading on the regulated market, i.e. the Financial Instruments Market. The organized Trading Platform complements the existing offer of TGE.
OTF (Organized Trading Facility) is an Organized Trading Platform, which means a multilateral system, which is not a regulated market or an alternative trading system, which associates in a discretionary way buy and sell offers. Trading on OTF can be various instruments (including structured finance products, emission allowances, derivatives) and wholesale energy products that must be performed through physical delivery.
From May 2020, market participants may conclude transactions on the Organized Trading Platform (OTF) operated by TGE on the following markets:
- Forward Products Market with electricity supply (RTPE),
- Forward Products Market with gas supply (RTPG),
- Property Rights Derivatives Market (RTPM),
The implementation of OTF was associated with the need to adapt the activities of the Exchange to the requirements of the MiFID2 Directive. The Polish Power Exchange in the years 2017-2018 consulted with market participants about the model in which forward markets are to operate under the regime of European regulation. As a result, a decision was made to transform them into an OTF platform, on which it is possible to further offer long-term contracting to market participants to secure prices and future energy and gas supplies, as well as to implement the stock exchange obligation.
OTF complements the existing offer of POLPX. Currently, trading on the markets organized by the Exchange takes place as part of the Commodity Market (electricity and gas spot market, property rights market), Financial Instruments Market (CO2 emission allowances) and Organized Trading Platform (futures markets: electricity, gas and rights property).
Settlement of transactions concluded at OTF was entrusted to the Clearing House of the Warsaw Commodity Exchange, which, under the authorization to operate the exchange clearing house, will continue to settle for transactions with RTPE and RTPG, and for transactions with RTPM as part of the authorization for the clearing and settlement house.