Vienna, March 19, 2019 – Stadtwerke München (SWM), one of Germany’s largest municipal utilities, has expanded its use of the VisoTech autoTRADER to the UK power market. This comes shortly after EPEX migrated the UK intraday market onto the M7 platform, enabling algo-trading in the UK for the first time. After a year of successful and stable autoTRADER operation on the German market, the Munich-based power supplier became one of the first companies to carry out algo-trading in the UK.
As part of a digitalisation initiative SWM set the ambitious goal to fully automate their complete direct marketing process, from weather forecasting to schedule nomination. Before they implemented the autoTRADER a year ago, they did not have a 24×7 trading program. Now they can trade power around the clock and profit from the market without the additional cost and complexity of a trading night shift.
Thanks to the much greater speed of algo-trading compared to manual trading we are currently enjoying a first-mover advantage.
In November 2018 EPEX SPOT migrated the UK intraday power market to the M7 platform. This enabled companies trading in the UK to perform algorithmic trading, using the M7 Trading System API. “The autoTRADER has already proven itself stable and reliable”, explained Christian Stettmaier, Head of Front Office at Stadtwerke München. “Based on our very positive experience in the German market, we decided to expand the autoTRADER into the UK market. Thanks to the much greater speed of algo-trading compared to manual trading we are currently enjoying a first-mover advantage.”
The UK intraday market is relatively young, but some products are already ready for algorithmic trading from the perspective of liquidity and spreads.
Naturally, the UK market is quite different from Germany. In particular, with a 2018 intraday trading volume of 19.0 TWh, it is much less liquid than the German market with 50.4 TWh. But intraday volumes are growing much faster in the UK: while the German market increased by a respectable 12.5% over the previous year, the British market boasted an impressive growth of 25%.
“In highly liquid markets such as Germany the challenge for traders is to keep up with the large number of order book events”, Jürgen Mayerhofer, Managing Director of VisoTech elaborated. “In the UK, the intraday market is relatively young, but some products are already ready for algorithmic trading from the perspective of liquidity and spreads. The British market is very interesting for us, since in the last few months we’ve been seeing a considerable increase in demand.”
About Stadtwerke München
Stadtwerke München (SWM) is the municipal utilities and services company of the state capital Munich and one of the largest energy and infrastructure companies in Germany. It supplies Munich with energy (power, gas, district heating, district cooling) and with fresh spring drinking water from the Bavarian Alpine foothills. The subsidiary MVG is responsible for subway, bus and tram. SWM also operates 18 indoor and outdoor pools. And the company is laying the foundation for the networked and livable city of the future: it is expanding the smart-meter infrastructure and the fibre optic network citywide and is increasing secure data transfer capabilities with the LoRa network. SWM is shaping the energy transition in power and heating: by 2025 the company intends to produce enough green power in its own facilities to cover the entire needs of Munich. By 2040 it plans fully CO2-neutral coverage of Munich’s district heating demand.
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