BaFin Sets New Position Limits for Electricity Derivatives on EEX

BaFin has issued a general administrative order establishing new position limits for the German Power Future (Base) and German Power Option (Base) contracts traded on the European Energy Exchange (EEX).

The position limit is set at 21,000,000 MWh for the spot month and 52,000,000 MWh for all other months. The decision is based on the provisions of the German Securities Trading Act (WpHG) and the Delegated Regulation (EU) 2022/1302 on position limits for commodity derivatives.

The products are classified as significant commodity derivatives, as open interest has again exceeded the relevant threshold. BaFin had lifted the position limits in 2022 after market activity had fallen below this threshold.

When setting the new limits, BaFin particularly considered the increased volatility in energy and electricity markets, including developments linked to geopolitical factors and the growing importance of renewable energy.