NSE & NCDEX promoted power exchange—Power Exchange India (PEX)— in a bid to compete with its rival MCX-Financial Technologies promoted Indian Energy Exchange (IEX), is offering slew of provisions to attract members. The exchange, which proposes to launch its operations from the first week of October from Mumbai, will offer Internet-based power trading, minimum power trading of 1 mw hour (mwh) and above all power seller will not be entitled for payment of margin. Indian Energy Exchange handles minimum trading of 10 mwh.
PXI CEO Rupa Devi Singh told FE, "We intend to start our operations from October 3 or 6 from Mumbai. We await clearance from the Central Electricity Regulatory Commission (CERC) for the rules and regulations. I do not want to draw a comparison between PXI and IEX. However, the notable difference is that PXI is Internet-based while IEX is on dedicated lease lines. We have taken a conscious decision that sellers of power will not have to pay margin. Following our decision, IEX has reciprocated."
Singh, who addressed power companies, banks and financial institutions at the roadshow, said PXI will initially involve in the day ahead auction which allows simultaneous buy and sell bids and seller will have flexibility to bid for time blocks with 'Block Bid' option. There will be complete anonymity of the bids between the traders and PXI will do financial settlement and clearing. Moreover, Singh said PXI has created IT back up in house while Nasdaq OMAX has developed software for IEX.
According to Singh, PXI proposes to have around 50 members who will be offered fair pricing. For trading member the annual fee will be Rs 1 lakh and one time fee of Rs 5 lakh and deposit of Rs 10 lakh. In case of trading and self clearing, the annual fee will be Rs 2.5 lakh, Rs 10 lakh of one time fee and Rs 25 lakh of deposit.
Members of trading and clearing category will have to pay annual fee of Rs 2.5 lakh, one time fee of Rs 10 lakh and deposit of Rs 40 lakh.
http://www.financialexpress.com/news/Power-exchange-to-provide-Internet-trading/356168/
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