General Trading Process


  1. Shipper creates a Trade Proposal
  2. The Trade Proposal is validated and published by the platform and optionally validated by the involved TSOs
  3. One or more Shipper(s) place a Response to the Trade Proposal
  4. Responses are subject to an acceptance procedure (either manually by the Initiating Shipper or automatically by the platform)
  5. Once a Trade Proposal has been matched with a Response, a Trade is created
  6. The Trade is validated by the platform and the TSO
  7. The Trade confirmation is send to both Shippers and to the TSO
  8. The Trade is published on the platform

Secondary Trading Procedures


Terms
Definition
Request
A Request is a response of a potential Buyer on a Trade Proposal, where the Trade Proposal creator is proposing to sell capacity
Trade Proposal
A Trade Proposal is a proposal of a shipper to either buy or sell capacity on the secondary market
Offer
An Offer is a response of a potential Seller on a Trade Proposal, where the Trade Proposal creator is proposing to buy capacity




There are two types of trade proposals:

1. Proposal to sell capacity:

  • A shipper holds capacity that they want to sell on the secondary market
  • Shippers in the market can place requests to buy capacity from the shipper who placed the trade proposal

2. Proposal to buy capacity:

  • A shipper is looking for capacity on the secondary market
  • Shippers in the market can place capacity offers to the shipper who placed the trade proposal




Types of trades

Trade

  • Once a Trade Proposal has been matched with a Response, a Trade is created
  • A Trade is the contractual agreement to assign capacity or transfer the use of capacity on the secondary market.
  • Each Trade has to be accepted by the TSO(s) either automated or manually


There are two types of trades:

Transfer of Use

  • Transfer of Use is a Transaction Type where the Selling Shipper remains the legal counterparty of the TSO and the Buying Shipper nominates the purchased capacity

Assignment

  • An Assignment is a Transaction Type where all rights and obligations are completely allocated from a Selling Shipper to a Buying Shipper





Trading procedures

Trading procedure

  • A Trading Procedure can be considered as the approach how a Trade Proposal is matched with Responses

There are three types of trading procedures (see next sections):

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




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 - capacity assignment & transfer of use are supported by PRISMA; TSOs can configure which transaction types are allowed to be traded at the corresponding points
  • Trading Times - secondary products can be traded 24/7 on the platform; lead time of the respective TSO must to 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)
    • Negative prices are allowed, i.e. the selling shipper could pay the buying shipper for taking over capacity
  • Bundling - unbundled entry & 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.