Definition

Bilaterally traded OTC swaps and futures may be registered as pre-arranged trades through MEFF, and they will be immediately sent to the Clearing House BME Clearing.

Both these instruments are agreements between two parties to buy or sell a specific amount of electricity on a future date at a fixed price.

The difference between futures and swaps is the frequency of the variation margin.

• In swap contracts the variation margin is not settled daily although they have a periodical settlement.


• In futures contracts the variation margin is settled daily.

The Clearing House provides a mechanism guaranteeing the successful outcome of the trades to both counterparties. The Exchange specifies standard contract features to facilitate trading and Trade Registration.