How It Works

All clearers wishing to clear transactions traded on Powernext® Day-ahead or Powernext® Futures whether as individual clearer (acting for its own account) or general clearer (acting both for its own account and for the account of one or several client(s)) must be approved by LCH.Clearnet SA on the basis of a certain number of criteria*.

* Refer to Powernext SA Website for detailed Clearing Membership requirements.

Powernext® Day-Ahead

Powernext® Day-Ahead represents the benchmark electricity short term market for energy actors to manage hourly electricity balancing risk 365 days a year.

A daily auction takes place 7 days a week, and determines a market clearing price (MCP) and a market clearing volume (MCV).

Powernext Day-Ahead products are accessible via the ElWeb Internet interface.

LCH.Clearnet SA, as the central counterparty for financial commitments, provides the expertise and security to Powernext® Day-Ahead members, insuring a greater efficiency and a high level of transparency by managing their initial margin deposits and daily settlements.

Deliveries are made within the French electricity grid RTE, considered as a single hub.

Powernext® Futures

Powernext® Futures provides electricity price risk hedging and arbitrage strategy at medium term with a liquid market offering 3 years of maturities and physical delivery on the French grid.

This order-driven market is available 5 days a week (TARGET calendar of the Banque de France), from 9:00 AM to 4:00 PM CET.

Powernext Futures contracts are continuously quoted through the Global Vision system developed by Trayport, which is accessible via the Internet.

LCH.Clearnet SA, as the central counterparty for financial commitments, provides the expertise and security to Powernext® Futures members through a standalone system known as the “Extensible Clearing System” (ECS), which is a browser based system with connection via Powernext SA’s network hub.

Net positions in Powernext® Futures are subject to initial and variation margining. Variation margining is based on Powernext settlement prices at (16:00h CET). LCH.Clearnet SA reviews initial margin rate levels periodically with tier-margining methodology.

On the expiry date, net positions in Powernext® Futures are subject to physical delivery, settled via a nomination of the physical positions to the French power transmission system. RTE.

Since its launch, volume in French Power futures clearing continues to grow with 2006 recording a total of 83 000 000 MWh.

Legal Documentation

Operating Rules for Derivatives Transactions on Powernext®

Admission Agreement for Derivatives Transactions on Powernext®