The transaction - a 20 Megawatt UK, Winter Peakload, forward contract which traded at Â£41.75 .- was executed through GFI's hybrid brokerage service, which combines the market's first electronic trading screen for these LCH.Clearnet cleared contracts with GFI's award winning voice brokers.
Robin Cole, UK Electricity broker at GFI, said: "This is the first time that a cleared UK electricity forward contract has been executed by a broker and it confirms GFI's position as a leading and innovative inter-dealer broker in the energy markets."
Until now, trades on the UK electricity forward market have taken place bilaterally over the counter. GFI launched this clearing solution in response to customers' demands to combine the benefits of a tailored over the counter contract with the reduced credit risks and costs associated with a cleared trade.
Richard Heyman, Director of Commodities and Energy at LCH.Clearnet said: "By removing counterparty exposure, the LCH.Clearnet clearing service overcomes the largest drawback of the over-the-counter market. We believe that commitment from major brokers such as GFI will be highly significant for the development and continued growth of the power markets."