On 19 November 2019, the 2nd wave for the European Single Intraday Coupling (SIDC), formerly known as XBID, has launched. Another seven European countries, including Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania and Slovenia started trading within the system and will profit from higher liquidity. SIDC is a project to support the European Internal Energy Market and to create a pan European cross-zonal intraday electricity market. In 2018, 14 countries (Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, The Netherlands, Portugal, Spain and Sweden) have already successfully started with continuous trading across European borders. For the end of 2020, a 3rd wave is planned.
For market participants this step comes with many advantages. SIDC is based on a common IT system and all Nominated Electricity Market Operators (NEMOs) and Transmission System Operators (TSOs) are connected to it. NEMOs have integrated the Shared Order Book (SOB), which allows them to forward all received orders and in return, they are visible in every NEMOs order book. This leads to active competition between the exchanges. The Capacity Management Module (CMM) and Shipping Module (SM), which are also connected with the TSOs, ensure that orders are visible outside their original market area, however only if there is enough transmission capacity available. This generates a higher liquidity on the markets, especially in smaller intraday markets. Thus, the market coupling is beneficiary for all members. First data from 2018 shows an increase in trading volumes by approximately 86%.
With PowerBot being compatible with SIDC since its start in 2018, our users do not need to worry about the changes that come with SIDC. If you are active in one of the markets, which recently joined the SIDC and have not yet focused on intraday trading, due to low liquidity, you should now think about entering (algorithmic) intraday trading. The higher volatility provides new opportunities for you.
If you would like to find out, how promising algorithmic trading can be for your company, do not hesitate and get in touch with us.
Further readings on SIDC:
- EPEX: Market Coupling
- EPEX: press release 18 November 2019
- HUPX: Market Coupling
- NEMO: Single Intraday Coupling
- ENTSOE: Single Intraday Coupling