On March 23, the Ukrainian Energy Exchange, the organizer of auctions for the purchase and sale of electricity under bilateral contracts, together with the state company "Market Operator" concluded a memorandum of cooperation. The companies will work together to develop the instruments of the derivative energy market. Such cooperation will help to increase fair competition level and leveling out unreasonable approaches to pricing on the electricity market.

This document refers to the introduction of forward contracts, futures contracts and options. The possibility of creating reliable mechanisms for hedging price risks of participants and the use of price indicators of the future value of electricity using energy derivatives is also stipulated.

"Introduction of new instruments, on which we will work together with SC "Market operator", will increase the interest of energy market participants in trading, will provide an opportunity to hedge price risks and make the electricity market more transparent.

Today, the derivative market, which we will develop, is the most attractive for investors, has wide opportunities for market instruments, which will allow each participant to realize their goals", - says CE UEEX CEO Оleksandr Kovalenko. He adds that it is very important to complete the full transition to the new electricity market, strengthening the role of exchange instruments, and thus, accessibility and openness to new market participants.