The Financial Derivatives Market was established on September 28, 2009.

General Information

• Traded contracts: IRDN24 index futures
• Contract execution by cash settlement
• Trading takes place on week days, Monday to Friday, 08:00 - 14:00 and on the day of contract execution from 08:00 to 11:30
• Trading takes place in accordance with the trading and execution calendar
• Futures for the IRDN24 index are traded in series for three months
• The last day of contract trading is the day of its execution, being by principle the fourth Thursday of every month
• Trading is carried out in a continuous trading system
• Trading unit: one contract, corresponding to 10 index units
• Trading currency: PLN
• The clearing guarantee system includes an initial deposit and guarantee fund
• Trading system: Condico Trade

IRDN24 index futures
TGE S.A. is managing the trade of future contracts for the IRDN24 index.
The FF_IRDN24_dd-mm-yy instrument is introduced to the trading.

Futures for the IRDN24 index are being traded in series. Three series of contracts are traded at the same time, i.e. FF_IRDN24_22-1--09 (where 22 is the day, 10 is the month and 09 is the year of execution of the contract), FF_IRDN24_26-11-09 and FF_IRDN24_22-12-09.

The last day of trading a contract is the day of its execution, which by principle is the fourth Thursday of each month. Initiation and termination of trading in subsequent series of future contracts is compliant with the trading and execution calendar, approved by the Management Board of POLPX.

The final financial settlement (clearing) of the concluded contract takes place on the day of its execution and it is equal (in absolute value) to the difference between the set rate of the IRDN24 index on the day of contract execution and the daily clearing rate from the previous day, multiplied by the volume (product of the number of contracts and their nominal value).

Key advantages of the POLPX financial derivatives

• Possibility of securing the price in a long-term perspective, without the need to acquire electrical power
• Access to the energy market of entities, which are not participants of the balancing market
• Possibility to secure prices for entities, which do not have concessions for trading, generation or distribution of electrical power
• Thanks to Mark-to-market settlement, deposit requirements are low
• Guarantee of transaction clearing thanks to a system of collaterals
• Transparency of functioning, thanks to the supervision of the Financial Supervision Commission (KNF)
• Easy conclusion of transactions, thanks to the modern and user-friendly brokerage application (CONDICO Trade)

Financial settlement of concluded transaction
The financial settlement of transactions concluded on the Financial Derivatives Market is being handled by the Clearing Chamber.

During the trading time, an initial deposit is being calculated for the concluded transactions, followed by mark-to-market settlement (current pricing of the contract value). The initial deposit is blocking-out financial assets of a particular Exchange Member in a bank account managed by the clearing bank, as collateral for execution of the settlement. The deposit is being released on the day following the day of execution of the contract.

The initial deposit provides a security collateral for the settlement of open positions in the trading period and on the day of contract execution and it is being determined as product of the balance of open positions on the contract, daily clearing rate and risk coefficient, established by the Clearing Chamber.

Financial settlements on the Financial Derivatives Market include all balances of financial settlement of open positions being in trading period and execution during a particular clearing week. The clearing balance is being determined as sum of the achieved profits and losses incurred in balancing all the open positions with the market.