Energy Traders Europe
Energy Traders Europe or EFET is a trade association of European energy traders in markets for wholesale electricity and gas. EFET advocates policies and regulatory measures which allow electricity and gas trading to develop freely while encouraging good risk management practices and responsible corporate governance. In its role as a standard setting body, EFET aims to provide standard solutions to common aspects of wholesale energy transactions, such as contracting and data exchange.
EFET depends on the cooperation of grid operators, regulators, brokers, exchanges, and other relevant actors. Therefore, EFET maintains frequent contact and exchange with the European Commission, ACER, ENTSO-E, etc., and similar bodies at national/regional level. On national/regional level, EFET cooperates with other trading associations such as TOE for the Polish market or Energy Traders Deutschland for the German market.
History
EFET was founded in 1999 in response to the liberalisation of electricity and gas markets within the European Union. As of 2024, the year of EFET's 25th anniversary, the association operates under the new name of Energy Traders Europe and has a new logo.Contractual standards
EFET has published standard contracts for physically settled energy wholesale transactions, which are available in many languages, and which are claimed to have had substantial influence on legal OTC-standards in the liberalised energy markets in Europe and beyond:- General Agreement Concerning the Delivery and Acceptance of Electricity
- General Agreement Concerning the Delivery and Acceptance of Natural Gas
- Credit Support Annex
- Master Netting Agreements
- Carbon Emission Allowances Appendices
- Individual Contracts for Biomass or Gas Capacity
- Standard documentation to trade various Renewable Certificates
Data Standards
EFET's data standards facilitate the integration of internal and external business processes, with the goal to enable straight-through processing. Applying the standards is promised to enhance process efficiencies, reduce operational risks as well as transactional costs.EFET's data standards are designed, maintained and released as open standards with the intention to ensure interoperability.
Data standards (listed in release order)
- electronic Confirmation Matching for the exchange and validation of electronic trade confirmations, October 2002
- electronic Position Matching, for the exchange and comparison of nomination data, Juni 2008
- eCredit Matrix Standard for the exchange of counterparty credit limits with brokers, July 2009
- Communications Standard for authenticated, confidential, unalterable, and undeniable message exchange, September 2010
- Commodity product Markup Language as a vocabulary for exchanging standardized messages for commodity trading and reporting processes, April 2012, CpML was governed by the CpML Foundation from 2013 until 2023
- electronic eXchange Related Processes for the registration of off-exchange clearable products, September 2012
- electronic Portfolio Reconciliation for the reconciliation of portfolios under EMIR, March 2014
- electronic Regulatory Reporting for reporting new trades and lifecycle events to regulatory databases, March 2015
- electronic Settlement Matching for the exchange and comparison of settlement data and invoices, February 2019
EFETnet
EFETnet was set up in 2003 as a cost sharing vehicle of EFET's member companies and turned into a subsidiary organisation in 2005 with the objective to realise and operate EFET’s data exchange and processing standards. In this role, EFETnet supported the development and maintenance of EFET's data standards and operated the central matching hub for electronic confirmation matching.In 2011, EFETnet together with DTCC were selected by ISDA to build a global trade repository for commodity over-the-counter derivatives trade types with the objective to fulfil current and future regulations. The Global Trade Repository for Commodities went live in January 2012 and received first trades in April 2012. It was later integrated with other repositories of DTCC to report under Dodd-Frank. In 2014, EFETnet launched its regulatory reporting service under EMIR, providing a standard interface to DTCC, REGIS-TR and UnaVista trade repositories. In 2015, EFETnet was amongst the first fully approved Registered Reporting Mechanisms under REMIT.
In 2017, EFET has divested its ownership in EFETnet to the subsidiary’s managing director.
Members
As of January 2014, EFET had a total of 126 member companies, of which 37 were associate members.Related Context
- Energy law
- Energy liberalisation
- Energy market and Energy derivative
- Commodity market
- Natural gas prices
- Electricity market
- Electricity Directive 2019
- Renewable energy in the European Union
- Power purchase agreement
- Energy Community