Secondary Market on PRISMA

Modified on:: Thu, 12 Aug, 2021 at 10:49 AM

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Introduction


Shippers can use PRISMA for a bilateral trade of capacity in the transmission system. Entry and exit capacities are tradable via the secondary functionalities offered on the platform.


Prerequisites to trade on the secondary market are: a successful registration on the Platform, and the secondary access approval by the Transmission System Operator (TSO).



General Trading Process


  1. A trade proposal is made: to buy or to sell. This proposal must then be validated by the platform. 
  2. Depending on the trade type, one or more shippers submit a trade response. 
    The selling shipper may then accept or reject the proposal.

  3. Once a response is matched with a proposal, a trade is created.

  4. The trade is subsequently validated by the platform and, if needed, by the TSO(s).
    A confirmation is sent to the shippers and the TSO(s).

  5. The trade is finally published on the platform and needs to be reported to ACER.



Types of Trades



Types of Trading Procedures

A trading procedure can be considered as the approach of how a trade proposal is matched with responses.

There are three types of trading procedures:

  • Over the Counter (OTC)
  • First Come First Served (FCFS)
  • Call for Orders (CFO)


Basic Principles

  • Contract duration: the contract period of each trade proposal can be defined individually by the shipper
  • Capacity categories: firm and interruptible capacity of all categories supported by the respective TSO can be traded on the secondary market
  • Transaction types: assignment and transfer of use are supported by PRISMA; TSOs can configure which transaction types are allowed to be traded at their corresponding points
  • Trading times: secondary products can be traded 24/7 on the platform; lead time of the respective TSO must be considered when trade proposal expiry date is set by the shipper
  • Anonymity: all non-OTC trading procedures are anonymous until the deal is concluded; only then the parties are revealed to each other. The counterparties may remain completely anonymous during the entire contract lifecycle if supported by the TSO (only possible for capacity assignments, with a price of € 0,00)
  • Prices
    • Prices (shipper to shipper) are entered in currency subunit (e.g. ct/kWh/h);
    • For Assignment transactions, the price field should contain only the extra surcharge above the regulated tariff (that is, final agreed price minus the regulated tariff); For Transfer of Use, you must enter only the agreed price;
    • Negative prices are allowed, i.e. the selling shipper could pay the buying shipper for taking over capacity.
  • Bundling: unbundled entry and exit products at the same point can be sold as a bundle if supported by the TSO
  • Product settings: the shipper placing the trade proposal can indicate whether it is allowed to buy/sell only a part of the offered/requested amount or period. Additionally, a minimum amount or period per trade can be set.



S
Simona is the author of this solution article.

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