The Electricity MIBEL contracts registered in the Clearing House are cash settled swaps and futures traded in MEFF directly arranged by the Members (or between Member’s Holders).
Both these instruments are agreements between two parties to buy or sell a specific amount of electricity on a future date at a fixed price.
The difference between futures and swaps is the frequency of the variation margin.
The Clearing House provides a mechanism guaranteeing the successful outcome of the trades to both counterparties. The Exchange specifies standard contract features to facilitate trading and Trade Register.
There are three different types of trading strategies:
The existence of market participants with differing trading interests in respect of these contracts bolsters market liquidity and efficiency.
Financial derivative contracts are accepted for Trade Registration, i.e. they are settled in cash.
The underlying asset is the delivery of notional electricity, during all the relevant hours depending on the type of product, on the Polo español del Mercado Ibérico de Energía (MIBEL):
The unit of registration is 1MW or 100KW (0.1MW).
The nominal/multiplier of the contract is determined in MWh, using the following formula:
MW * No of contract days * No of product type relevant hours
For contracts with unit of registration 0.1 MW:
0.1 MW * No of contract days * No of product type relevant hours
For Spring and Autumn daylight saving time, there will be one additional hour (if day has 25 hours) or one hour less (if day has 23 hours).
The contract is priced in Euros per MWh, with two decimal places.
The registration period is between 08:00 and 19:00.