Last week, 21 November during the annual EFET general meeting in Barcelona, the EFET Board announced the divestment of its ownership interest in EFETnet.
The EFET Board selected a management buyout as its preferred divestment method and the Board are pleased to have been able to conclude an agreement with Mr Hugh Brunswick who has successfully managed EFETnet since its inception 13 years ago.
Hugh Brunswick will continue as Managing Director of EFETnet, and he – through personal and binding commitment to the terms and principles of the divestment - will ensure continuity and stability of service provision to EFET members and the broader EFETnet user community.
“The EFET Board have successfully balanced the needs of both the EFET membership and the broader EFETnet user community in their decision, and it is delighted that Hugh Brunswick has agreed to continue in his role as Managing Director of EFETnet and provided the assurances we sought regarding future operation of EFETnet.” –Jan van Aken, Secretary General, EFET
“Over the past 13 years EFETnet has earned the trust and respect of the community – which is critical to what EFETnet does and will continue to do. With new processes such as electronic Trade Monitoring and new technologies like blockchain, we are looking forward to working with the community on more of the same but also many new challenges”. Hugh Brunswick, Managing Director, EFETnet
“Ponton have enjoyed a long and successful partnership with EFETnet, the EFET Board’s decision ensures continuity and stability for the EFETnet community and we at Ponton are looking forward to continuing our close cooperation with EFETnet on the same basis as before” – Tilo Zimmermann, Managing Director, Ponton
EFETnet was established in 2004, as a cost-centre to pool the cost of implementing EFET standardised post trade processes, for example peer-to-peer confirmation matching (eCM), to facilitate an efficient trading environment for EFET members at a time of rapid growth and development of the EU energy market.
In more recent years, the focus on market efficiency has been driven by regulatory reporting requirements stemming from various schemes: EMIR, REMIT, MAR and MiFID II.
Consequently, EFETnet’s services have expanded into new areas, and the EFETnet user community, now numbering in excess of 1,200 energy traders and other market participants, has significantly outgrown the EFET membership.
In order to ensure further development of EFETnet to the benefit of the whole European energy trading community, while at the same time, guaranteeing continuity and stability in provision of the essential services that EFETnet delivers to EFET members and the broader EFETnet user community, the EFET Board decided to pursue the divestment of its ownership interest in EFETnet.