BSE, PTC India and ICICI Bank promoted Hindustan Power Exchange commences operations
· Promises to usher in speed, efficiency and transparency in power trading
· To initially offer Term Ahead Market (TAM), Green Term Ahead Market (GTAM) and Renewable Energy Certificates (REC)
· HPX to be powered by same technology that makes BSE the fastest exchange globally
New Delhi, 6st July, 2022: Hindustan Power Exchange (HPX), promoted by Bombay Stock Exchange, PTC India and ICICI Bank, today commenced operations after receiving all necessary approvals from Central Electricity Regulatory Commission. Backed by the latest technology and a series of innovative features, the exchange promises to offer speed, transparency, and better price discovery in the execution of trades. The exchange will initially offer trading in Term Ahead Market, Green Term Ahead Market, and Renewable Energy Certificates. It will steadily increase its product portfolio and provide a wide range of contracts to address the demand of different segments of the electricity market.
Speaking on the launch, Mr. Akhilesh Awasthy, COO, Hindustan Power Exchange said, “The need for a third power exchange has been felt for quite some time now by the buyers and sellers for optimized price discovery and better efficiency in power purchase. HPX will be a seamless platform that has been built on the same technology, which makes Bombay Stock Exchange the fastest exchange in the world. The matching engine of the exchange is procured from one of the best technology providers in the world, which is also the technology provider for power exchanges in Europe. We will also gain from the significant experience of our promoters, who are leaders in their respective areas of operations.”
“Almost 90% of India’s electricity is traded via bilateral contracts lasting for 20 years or more between power generation companies and state utilities. These contracts do not provide the flexibility to sector participants to take advantage of market conditions at different times. Power Exchanges provide the market participants a platform with multiple avenues for buying selling of power and hence manage their power portfolios efficiently. The introduction of HPX will give a definite push to the development and progress of spot trading in electricity,” he added.
Mr Sameer Patil, BSE said, “Hindustan Power Exchange (HPX) has been envisaged to promote market efficiency through advanced technology and to maximize value for the power market. The cutting-edge technology solutions, efficient price mechanism and the quality of service offered at HPX, would act as the differentiator in the Indian Power Market. With the technology set to be one of the key point-of-difference in the Indian Power Market, BSE looks forward in carving its footprint in the sector, thereby paving the way for a technology-led efficient power market through HPX.”
The Indian power sector is at the cusp of a massive energy transition where the share of renewable energy is steadily rising in India’s power generation mix. Further, more variable power output from wind and solar plants is set to push short-term trading of energy, thereby giving more options to both buyers and sellers. HPX will play a pivotal role in bridging the gap between demand and supply and providing trading at an optimized cost.
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE also has a dedicated MF distribution platform BSE StAR MF which is India Largest Mutual Funds Distribution Infrastructure. BSE launched commodity derivatives trading in Gold, Silver, Copper, Oman Crude Oil Guar Gum , Guar Seeds , Turmeric , Cotton & Almond.
BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
BSE has set up an Investor Protection Fund (IPF) on July 10, 1986 to meet the claims of investors against defaulter Members, in accordance with the Guidelines issued by the Ministry of Finance, Government of India. BSE Investor Protection Fund is responsible for creating Capital markets related awareness among the investor community in India.