©ICIS HEREN - Hungary�s Mavir submits application to set up awaited power exchange
The Hungarian system operator Mavir submitted an application on Thursday (11th September) to the country’s energy watchdog to setup HUPX - the much anticipated power exchange. Mavir’s head of market development, Zoltan Medveczki, told ICIS Heren that if all prerequisites were met on time, the exchange, which would initially list Day-ahead products, would be operational by March 2009. Hungarian law stipulates that the onus of creating the exchange falls on the TSO, if the energy regulator, MEH, does not receive an acceptable application from a third party. As this has not happened, the application by Mavir is just a formality. The March start-up would only be met if the necessary regulatory work was completed by Mavir and MEH on time. Although to begin with HUPX will only list Day-ahead products, there are already plans to offer Future contracts. Medveczki said that monthly, quarterly and annual products would all hopefully be introduced at some point in 2009. Mavir is also considering market coupling with neighbouring exchanges, he added. Medveczki explained that over 70 market participants had attended a workshop and presentation on Thursday afternoon, which demonstrated that there was more than adequate interest in the creation of HUPX. The Hungarian over-the-counter (OTC) market is also showing encouraging signs with brokers reporting a steady rise in traded volumes over the last few months. Mavir has highlighted in the past that as a TSO it is not the correct body to run an exchange. However, as it is now ploughing ahead with the project, Mavir has pledged to only maintain 100% control of the exchange until it becomes profitable. Plans to create HUPX surfaced in 2007, with an initial startup date of July 2008. However, due to the lack of interest from other market operators and ongoing development, the project was delayed to early 2009 (EDEM 12.108) The software to run HUPX will be provided by OPCOM, the Romanian Day-ahead market operator. This software, Medveczki said, is based on the Nord Pool’s system. The clearing house will be Keler, which is used by the Budapest Stock Exchange. (THE ICIS HEREN REPORTS - EDEM 12 177 / 11 September 2008)

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