N2EX – Switch to Seven Day Auction from 7 December 2012
N2EX is changing to a seven day, day-ahead auction cycle from Friday 7th December, in preparation for the launch of North-Western Europe (NWE) Market Coupling.
The weekend beginning Friday 7th December will mark the transition to this new cycle, with single daily auctions being held at 09:30 UK time on Friday, Saturday and Sunday – 7th, 8th and 9th December.
Auction results will be published at 09:40 UK time every day, 10 minutes after gate closure.
NWE Market Coupling is expected to launch during 2013, with N2EX joint operator Nord Pool Spot acting as GB Virtual Hub operator. It is a prerequisite of NWE Market Coupling that N2EX synchronise its auction with European standards. The move to a seven day auction cycle is the first step in this standardisation process.
How will this affect you?
Technical Impact:
This change does not require any technical upgrades to the N2EX Trading or Clearing systems.
Changes to Gate Closure:
In due course NWE Market Coupling will require a change of Gate Closure time at N2EX from 09:30 to 11:00 UK time. The N2EX Market Council anticipates that this change will be implemented shortly before the launch of NWE Coupling. The precise date of this change will be decided by the Council once a formal launch date for NWE Market Coupling has been announced.
For the time being therefore, Gate Closure will remain at 09:30 for all N2EX auctions.
Risk Management Impact:
Switching to a seven day auction cycle also impacts the risk management procedures in place for N2EX. NASDAQ OMX Stockholm AB as the clearing house for N2EX will set out the details of these changes in a separate market message.
Risk Management at NASDAQ OMX Stockholm AB will hold a forum to discuss the handling of weekend risk procedures during October. All N2EX members will be invited to participate.
Changes to the N2EX Rulebook:
The N2EX rulebook will be updated to reflect this change no later than four weeks prior to launch of the new auction (7th December 2012). Members will be emailed when this document is available to download from the N2EX website.
Should you have any questions please contact Emma McKiernan, Client relationship Manager, N2EX: +44 7887 744 700 emma.mckiernan@npspot.com
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