OTC Broker Give-up
APX-ENDEX, in partnership with energy broker Tullett Prebon, provides a clearing and nomination service to the APX UK Power and Gas markets for over-the-counter (OTC) trading activities.
Once a trade is matched by the broker, it is ‘given-up’ to APX-ENDEX for clearing and nomination. The trade is then cleared using the members’ APX-ENDEX collateral, thereby removing potential credit issues for the matched counter-parties. The service eliminates the post –trade requirement for counterparties to have in place an active Grid Trade Master Agreement (GTMA) in the case of power OTC trades, or an NBP 97 Agreement in the case of gas OTC trades, as APX-ENDEX takes the role of central counterparty to both legs of the contract.
This service is particularly useful for new entrants to the APX UK Power and Gas markets, as it opens up the range of market players available with whom they can trade. In addition, given the current uncertainties in the financial markets, having the ability to cover credit risks by utilising APX-ENDEX’s collateral arrangements, provides market participants with greater flexibility in their OTC trading activities.
Using the service is simple: you will need to be a full trading member of APX Commodities Ltd. for either Power or Gas, and have a live broker agreement with Tullett Prebon. Trading activity is governed by the Market Rules of APX Commodities Ltd. and therefore there are no additional legal agreements to sign.
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