IES-Holding’s “Trading” Division Gets Access to Trading in Power Futures

The "Trading" Division is going to take an active part in futures trading, implementing a unified strategy of IES-Holding's power generating companies in the Russian wholesale electricity and power market.
The Moscow Energy Exchange launches power futures trading for price indexes of two hubs in the first pricing zone - the Center and Urals. A futures contract for the hub price index is a non-deliverable settlement agreement to be concluded at the Moscow Energy Exchange. Real purchasing of power takes place at the Administrator of Trading System in the day-ahead market (DAM).
The "Trading" Division's specialists attended a training course in trading futures contracts at the Moscow Energy Exchange in January-March 2010. As a result, a representative of IES-Holding rated among the top-ten traders showing maximal yield on operations. The training course was attended by representatives of 160 companies including buyers and sellers of electricity and power, and professional financial market players.
"Futures contracts are a new step in the development of the Russian energy market. They give market players an opportunity to use more flexible strategies of work. Futures contracts will make energy costs more predictable for power consumers and will give them a possibility to hedge their financial risks more efficiently," - says Eduard Smelov, Executive Vice President and Head of the "Trading" Division.