In power trading, a market maker mechanism refers to an entity or system that facilitates liquidity and ensures the smooth functioning of electricity markets. Market makers are critical in financial markets, including energy markets, as they help balance buy and sell, provide price indications, and reduce volatility.

The role of market makers in power trading is essential to maintain liquidity, promoting price indications, and reducing market volatility. They help ensure that the market functions smoothly by providing a continuous flow of buy and sell offers and taking on risks when necessary. However, their operations are often influenced by a combination of regulatory frameworks, market conditions, and technological advancements that shape how effectively they can contribute to market stability.

Curricula

• Understanding Electricity Markets & Market Making Fundamentals

  • Market Development & Role of Market Making

    • Evolution of electricity trading

    • Importance of liquidity for market efficiency

    • How market makers contribute to price stability and volatility reduction

  • Market Maker vs Market Taker

    • Passive liquidity provision vs active trading

    • Role in bid-ask spreads and order book depth

•  Market Maker Assignment & Responsibilities

  • How Market Makers Are Assigned in Electricity Markets

    • Exchange requirements and tendering process

    • Key criteria for selection

  • Conditions for Market Making Agreements

    • Minimum quote sizes & bid-ask spread obligations

    • Execution obligations & trading commitments

    • Penalties for non-compliance

  • Market Maker Benefits vs Costs

    • For Market Operators:

      • Increased liquidity and participation

      • More stable pricing and reduced volatility

    • For Market Makers:

      • Trading incentives (rebates, fee discounts)

      • Market access advantages

      • Potential for arbitrage

•  Market Liquidity & Liquidity Provision Strategies

  • What is Market Liquidity in Electricity Trading?

    • Definition and key metrics

    • Impact of liquidity on pricing and trading strategies

  • Liquidity Provision in Electricity Markets

    • Continuous quoting vs periodic quoting

    • How market makers adjust to price fluctuations

  • Market Making vs Arbitrage Trading

    • Differences in strategies and risk exposure

    • Role of high-frequency trading in electricity markets

•  Market Making Strategies & Algorithmic Trading

  • Automated Market Making in Electricity Markets

    • Algorithmic execution strategies

    • Dynamic pricing and order placement models

  • Auto-Quoting & Market Making Bots

    • How auto-quoting improves efficiency

    • Risks of automated liquidity provision

  • Challenges in Algorithmic Market Making

    • Managing price volatility and demand uncertainty

    • Market manipulation risks and regulatory compliance

• Market Making in OTC Electricity Markets

  • Key Market Making Models

    • Bilateral Liquidity Provision

    • Voice & Electronic Brokerage Services:

    • Guaranteed Execution for Hedgers

    • Cross-Border Trading & Market Arbitrage

  • Success Factors & Challenges

•  Challenges & Practical Considerations

  • Market Making Challenges in Electricity Markets

    • Price spikes and extreme volatility

    • Regulatory and policy risks

    • Competition and market structure issues

  • Impact of Renewables on Market Making

    • How renewable integration affects liquidity and price dynamics

    • Adapting market making models to intermittent generation

  • Regulatory Oversight & Compliance Considerations

    • Regulatory frameworks

    • Best practices for compliance in electricity market making

• Case Studies on Successful Market Making Models

  • Two case studies that illustrate different successful market-making models. These cases highlight how market makers improve liquidity, stabilize prices, and enhance overall market efficiency.

    • Case Study Nord Pool - Market Making in the Intraday Market

      • Overview

        • Key Market Making Model

        • Continuous Quoting

        • Auto-Quoting & Algorithmic Trading

        • Incentives

      • Success Factors & Challenges

  • ​Case Study EPEX SPOT – Market Making to improve Order Book liquidity

    • Overview

    • Key Market Making Model

      • Minimum Volume & Spread Requirements

      • Compensation for Market Makers

      • Focus on Intraday Markets

    • Success Factors & Challenges

• Case Study: Market Making in OTC Electricity Markets

  • EDF Trading & OTC Market Making

•  Final Discussion & Q&A

Costul cursului

• 3500 lei/persoană;

Pentru membrii AFEER:  

• 2275 lei/persoană 

​