PEGAS on PSV

PEGAS initiative on PSV PEGAS has extended its natural gas offer on continental Europe by offering both financial and physical futures contracts on the Italian Punto di Scambio Virtuale (PSV): Financial settlement performed against the ICIS Heren Spot price assessment Physical settlement with nomination performed by GME acting as “nomination agent” for ECC Additional location spreads between the existing TTF physical and PSV financial & physical product Additional Financial / Physical Spreads introduced as “EFS service” (Exchange For Swaps)

PSV on PEGAS : Multiple benefits Competitive Membership fees

No market entry fee to become a PEGAS market participant at Powernext No additional annual fee for existing PEGAS/EEX members No annual membership fee for new members in the first year of trading Trayport® Trading System Access to all PEGAS markets and location spreads in one screen Aggregation of PEGAS prices with Trayport Trading Gateway℠ OTC Registration « Straight Through Process » enabled Both technologies supported : Trayport Hosted Clearing Link and EFETnet eXRP

Straight-forward nomination by ECC

Simplified and harmonized clearing & settlement Reliable and proper payment processes, according to transparent payment rules Cross margining savings at ECC inside all PEGAS markets

Products Specifications PSV Futures Contract

Physical Futures with delivery on the PSV of SNAM Rete Gas Financial Futures settled on the average of the daily ICIS Heren Spot price assessment for PSV during the delivery period

Trading

Continuous, 8:30 am to 6 pm CET

Trade registration

8:30 am to 6:15 pm CET

Maturities

3 Months 3 Quarters 2 Seasons 1 Calendar year

Minimum volume

5 MW

Volume tick

5 MW

Price tick

€ 0.025/MWh

Location spread

PSV / TTF PSV Fin/TTF PSV Fin/PSV

PSV Physical : Focus on nomination Simplified Nomination Process will apply, via GME

ECC’s shipper code on SNAM Rete Gas : 00240 Single Sided Nominations are performed :  Members do not need to send nominations nor to validate  The ECC value always prevails (no “lesser of the two” rule) GME acting as “nomination agent” for ECC (ECC remains the central counterparty of your deals) but no GME membership is required : members allow ECC to use GME as nomination agent in a dedicated ECC form

Futures position in delivery are nominated in Day-Ahead to limit bank guarantee requirements of members towards SNAM Rete Gas, even during WE and Holidays (7/7 services) since no operational task is

required at members side. 5

Cross-margining between ECC cleared products German Gas

TTF Gas

French Gas

UK Gas CEGH Gas Italian Gas

Italian Power

German Emissions Power

German Gas

59-100%

56-89%

44-88%

68-83%

54-62%

45-56%

44-54%

31-44%

22-34%

6-33%

TTF Gas

56-89%

60-100%

43-89%

69-83%

54-63%

43-57%

43-55%

31-44%

22-32%

27-31%

French Gas

44-88%

43-89%

43-100%

43-100%

40-61%

41-57%

42-57%

31-44%

24-30%

27-34%

UK Gas

68-83%

69-83%

43-82%

79-100%

42-66%

45-55%

45-56%

36-45%

25-25%

28-32%

CEGH Gas

54-62%

54-63%

40-61%

42-66%

77-100%

38-60%

28-64%

35-42%

26-26%

26-31%

Italian Gas

45-56%

43-57%

41-57%

45-55%

38-60%

52-100%

25-56%

26-49%

31-38%

32-48%

Italian Power

44-54%

43-55%

42-57%

45-56%

28-64%

25-56%

42-100%

31-59%

24-40%

33-56%

German Power

31-44%

31-44%

31-44%

36-45%

35-42%

26-49%

31-59%

25-100%

29-47%

29-42%

Emissions

22-34%

22-32%

24-30%

25-25%

26-26%

31-38%

24-40%

29-47%

33-100%

25-31%

Coal

26-33%

27-31%

27-34%

28-32%

26-31%

32-48%

33-56%

29-42%

25-31%

43-90%

Note: these figures might evolve

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Confidential – Not legally binding

Coal

PSV Physical Futures - Membership Adding the new Futures products to your membership will be simple and free of charge PSV Physical Futures will be included in your Standard PEGAS and ECC Memberships For members already registered on PSV Financial products : - Only one additional form needed (TP_PWX_01 Form) to provide ECC with your shipper code and accept the delivery conditions (nomination deadlines) - No additional document to be signed with Powernext : traders registered at Powernext to trade PSV Financial Futures will automatically be registered for PSV Physical Futures products.

For members already on other PEGAS products (but not on PSV) : please indicate in addition which traders should be activated on PSV Physical Futures

For non-PEGAS members : please contact the Sales team to receive your membership package

With no additional cost : No additional membership fee for existing PEGAS members Free membership fees (for 12 months) for new members joining PEGAS before end of 2015.

7

Setup to start customers

trading

for

existing

Contact PEGAS Sales team

Contact your Clearing Member to be authorized on PSV Physical Futures You’re ready!

If needed, request set up of new PEGAS traders on PSV

8

Fill in ECC TP Form (with your shipper code)

PEGAS

27 PEGAS Members already active on PSV Axpo Italia S.p.A.

GDF SUEZ TRADING SAS

Banca Akros S.p.A.

Greenex s.r.o.

CASTLETON COMMODITIES

Gunvor International B.V., Amsterdam,

MERCHANT EUROPE Sarl

Geneva Branch

DANSKE COMMODITIES A/S

KOCH Supply & Trading Sarl

DUFENERGY TRADING SA

MERCURIA ENERGY TRADING SA

DUFERCO ENERGIA S.p.A.

NEAS ENERGY A/S

E.ON Global Commodities SE

RWE SUPPLY & TRADING GMBH

ECONGAS GmbH

SOLVAY ENERGY SERVICES

EDF TRADING LIMITED

Sorgenia Trading S.p.A.

Edison Trading S.p.A.

TRAILSTONE GMBH

Electrade S.p.A.

UTILITA SpA

ENEL TRADE S.p.A.

Vattenfall Energy Trading GmbH

ENI TRADING & SHIPPING S.p.A.

Youtrade S.p.A.

ENOI SPA

PEGAS traded volumes on PSV since launch date 1.400.000 26th March : Launch of PSV Financial Futures

1.200.000 18th September : Launch of PSV Physical Futures

1.000.000 800.000 PSV

PSV Fin

600.000 400.000 200.000 March

April

May

June

July

August September

Price list for PSV Trading Fee holiday : Trading Fee will be free for all trades initiated on screen until end of

2015. PEGAS/ECC fee level Screen trading fee derivatives

0.25 €ct/MWh

OTC Clearing registration fee

0.25 €ct/MWh

ECC clearing fee derivatives

0.25 €ct/MWh

ECC delivery fee (on volumes in delivery)

1.00 €ct/MWh

PEGAS annual Fees Membership fee*

User licence** for Trayport® ETSSM Gas Direct Screen Trading Gateway * Only for non PEGAS member, if they register after end of 2015 ** Only for new registered traders

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7,000 €

1,800 €/year

Contact list Sales Team Paris – Support in English and French Richard Katz [email protected] +33 (0)1 73 03 96 02

Sophie ASSEO MOUQUET [email protected] +33 (0)1 73 03 76 04

Jamel HADAOUI [email protected] +33 (0)1 73 03 76 09

Ruben MAMOU [email protected] +33 (0)1 73 03 76 06

Sales Team Milan – Support in English, Italian and French Emilien BOBBE [email protected] +39 02 8633 7215

Maurizio MAPPELLI [email protected] +39 02 8633 7238

Sales Team Leipzig – Support in English and German Tobias LUCHT [email protected] +49 341 2156 215

Roman ZYUZEV [email protected] +49 341 2156 211

Membership – Support in German, English and French Alexandra PHILIPPE +33 (0)1 73 03 76 88

Olatz GARCIA +33 (0)1 73 03 76 70

[email protected]

Susanne DÖBEL +33 (0)1 73 03 76 71

Adrien CALVEZ +33 (0)1 73 03 76 69

Clearing – ECC is available for all clearing questions. Contact details can be found on www.ecc.de

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Confidential – Not legally binding

Thank you for your support!

APPENDIX

PSV Physical Futures - Margining Standard Margining Processes will apply, including crossmargining Initial Margin (to cover overnight risk) Similar to existing Futures products Cross Margining will apply under the same conditions

Standard Variation Margin (P&L) Similar to existing Futures products

No dedicated Delivery Margin is required Specific risks of mismatches and defaults related to the nomination model will be taken into account in the regular margin parameters, in the so called “Expiry Month Factor” (EMF)

SPAN file will be available for download from ECC website

15

Trading, clearing & settlement of financial Futures

Trading day March 16th

Settlement of Variation Margin*

Margins are called/ released*

EUREX Reports are available*

Margin Requirement Calculation

Variation Margin Calculation

Trade

Daily* Variation Margin and margin requirement calculation until expiry day

T+1 March 17th

Trading period – till March 28th * On TARGET2 days only

Daily* margin call/ settlement of Variation Margin until expiry day

Cascading of calendar, season and quarter contracts

D-3 March 27th

No physical delivery takes place. The contract size is constant throughout the whole delivery period.

D April 1st to 29th

Final settlement price = arithmetic average of the ICIS Heren Spot price assessments

Cash settlement based on the final settlement price on the TARGET2 day after the last trading day.

Expiry day April 30th

Delivery period – April 1st to 30th

Settlement day May 2nd

PSV Financial : Focus on financial settlement March

Trading

Clearing and settlement

1st

Trade: company A buys 30 MW of April 2015 at 24€

Last trading day for April 2015 contract

26th

Standard margin calls based on ECC daily Settlement prices on the tradable April 2015 Contract Example: Settlement price = 24,10€ on March 26th

30th 31st

April 1st

6th

29th Financial cash settlement of the position owned on PSV financial by company A

30th

Margin calls based on ECC settlement prices, being a daily evaluation of full size April 2015 contract (calculated with Spot prices for the past days, and BOM price for that day) Example: Settlement price = 25,20€ on April 6th

Financial cash settlement of April 2015 contract: difference between the arithmetic average of the Spot PSV price assessments of ICIS Heren and the price of the Transaction Example: Final Settlement price = 26,20€

ECC will pay 2,20€/MWh to company A

Cross-margining between Italian gas and power

Italian Natural Gas

Italian Power

Maturity

Month

Month

0% -52%

10% -48% 23% -48%

n.a.

Quarter

3% -67%

9% -56%

27% -52%

n.a.

Week

4% -50%

4% -43%

14% -35%

n.a.

Year

21% -57%

2% -54%

31% -47%

n.a.

Note: these figures might evolve

Quarter

Season

Year

Straight-Through Processing for PEGAS Since March 19th, Powernext and ECC offer Straight-Through Processing (STP) of OTC transactions from the Broker directly to the clearing house Transaction realized on Broker screen, subsequent position opened directly on Members clearing account Full automation of trade confirmation is possible Reduces operational risks and manual interactions by avoiding manual re-entry of trades captured in the Broker system, as well as manual confirmations in the clearing system

Supported technologies include Trayport Hosted Clearing Link EFETnet Clearing Registration Service (eXRP)

Powernext OTC Web interface and EUREX Clearing GUI registration channels will remain available

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Confidential – Not legally binding

STP Clearing of PEGAS Futures in Trayport To register your OTC Derivatives for clearing on PEGAS through STP Contact your respective Brokers to activate the service prior to launch Select corresponding PEGAS OTC Cleared instruments and the relevant Broker venue when inserting an order

20

Confidential – Not legally binding