Questions for the market participants and stakeholders regarding the financial markets in the Nordic region
1) Which group (s) in the Nordic electricity market do you represent (producers, retailers, traders end consumers or others)? In which bidding area (s) do you operate?
2) How do you view the functioning of the current financial market and the instruments it provides? Does the financial market satisfy your risk hedging needs? Please specify for all the Nordic bidding areas you operate in.
3) Could the introduction of LTTRs in the Nordic market bring additional hedging possibilities for you? Please specify for all the bidding areas you operate in.
4) LTTRs can be used to hedge the price difference between two neighboring price areas and they do not have a connection to the system price. Explain how you view a hedge between two bidding zones – does it add value to the market?
5) How would a potential introduction of LTTRs in the Nordics, in your view, affect the liquidity of the current financial market and why? Specify for different products, if necessary.
In case LTTRs are introduced, they would be traded at the European single allocation platform in the long run.
6) Does the trading venue and model of trading (auctions or other) affect the appeal and arrangement of hedging?
The current financial markets can be developed in various ways independent of the solutions related to LTTRs.
7)How can market participants, stakeholders and regulators promote the functioning of the current financial market and secure sufficient hedging possibilities for fundamental market participants?
8) In case the financial market is not functioning effectively, what possible measures can you envisage to improve the market functioning related to hedging possibilities in the Nordic bidding areas?
- If TSO’s are to become involved in the forward markets in the Nordic region, what kind of involvement would you prefer on their side?
- What is the most efficient ways for them to support the existing market functioning?
9) How should the market for hedging instruments, financial market and physical market be developed further in the long run, in your view?