Trading: Short Term
The following customer is a German energy company that generates the energy volume to supply a medium-sized city in Germany with district heating. The company has market access to the EPEX power exchange. Its energy portfolio is traded both long-term and short-term in market coupling, the day ahead market and intraday market. In addition the company carries out OTC trading with partners or via service providers.
A new power generation plant, the latest extension to its portfolio, has greatly increased this energy company’s flexibility and has opened up new trading opportunities.
The company commissioned ProCom GmbH to identify a solution that was as fully automated as possible, for short-term trading of assets in the intraday market, thus freeing up traders to concentrate in the future on the profitable trading of its portfolio flexibility in the intraday market.
In order to accomplish the project goal, the experts at ProCom implemented the ITA IT solution as well as an intraday business process, integrating them in the BoFiT system already installed. The ITA solution has a direct connection to the EPEX intraday exchange in Paris via the API interface. ITA displays all 120 (96 x ¼h and 24 x 1h) intraday products in real time including order books. Bid proposals are generated based on intraday optimization of the whole portfolio, taking current intraday prices into consideration. In addition, limited bids are proposed within portfolio flexibility and unlimited bids to balance the portfolio.
Bids can be sent to the exchange via a one click order. OTC deals can also be managed using ITA. Intraday trading is rendered transparent since the internal book and the reason for trading are recorded and later evaluated for every deal. Automatic status tracking displays the current status of all bids and deals at any time. Deal capture is carried out by automated data processes.
ITA is an automated all-in-one solution that optimizes intraday trading and creates a direct link with the portfolio. The portfolio becomes very transparent for the trader who can make informed decisions quickly and at any moment. The customer receives periodic trading proposals for trading his own flexibility. ITA provides information on current exchange prices in real time. Bidirectional communication with the exchange is fully automated. ITA can be coupled to all systems without difficulty.
The ITA software package is an online trading platform offering access to the main power exchanges in Europe, including EPEX, APX, BELPEX and NordPool. In combination with the planning software BoFiT, this solution offers comprehensive functions for optimizing and planning portfolios as well as various interfaces to external systems which are bundled in ITA. This means ITA can offer effective support for the relevant tasks of continuous intraday trading.