ET Exercises

• the Spot market can be splitted into Day-ahead Market and Intraday Market
• Auctions are collected for Day-ahead until closure (noon)
• ⇾ after closure an equilibrium price is found (12:30)
• 15:00 ⇾ Intraday Market starts 
• ⇾ not a fixed gate auction: continuously trading between two points in time
• ⇾ trading is possible until 30min before delivery
•    ↳last trading option between 30min and delivery is only in the local transmission network

• Day-ahead=fixed gate auctions:
• participants submit buy/sell orders for several areas hours
• submissions are closed at a pre-specified time (noon)
• Market gets cleared

• Intraday=continuous-time auctions: 
• Participants continuously submitting orders
• orders are stored
• Each time a transactioon is feasible, it gets executed

• orders are sent to the Order Book (OB) by exchange members until:
• ⇾ cancelation
• ⇾ modification
• ⇾ execution
• ⇾ expiration
• OB and transactions are anonymous
• after closure, orders are binding and irrevocable
• daily auctions after Book closure
• price corresponds to the exchange members aggregated supply and demand curves
• price determined by the algorithm at the time of auction is the price at which all the trades will be executed
• algorithm aims at optimising the total welfare (seller surplus, buyer surplus, congestion rent and tariff rates)
• algorithm determines the execution prices, the matched volumes and the net positions of each coupled market if applicable
• it returns the selection of blocks that will be executed

Due to renewable infeed during daytime (pv)

• sending a LO indicated desire to buy/sell at a given price up to  certain quantity
• ⇾ execution is not guaranteed

• sending in a MO indicates desire to buy/sell a certain quantity at the best price available
• ⇾ Execution is immediately after sufficient volume is available

The Limit Order Book is a collection of all currently available buy/sell LOs by time of arrival ⇾ sorted by price first, date second