1. Mod 14: Foreign Exchange Rate
25 April 2018

2. Proposed Modification
SEMOpx is proposing that the timing of the SEMO Foreign Exchange Rate Report is changed from 17:00 the prior to Gate Closure 1 (i.e D-2) to 11:00 the day of Gate Closure 1 (i.e. D-1)
This will allow for the same rate that will be applied to SEMOpx’s day-ahead and intraday auctions to be applied to the balancing market

3. Background
The SEM-GB Regional Project - coupling project between the SEM and Great Britain for the day-ahead (DAM) and cross-border intraday auctions
Regional Partners: EPEX Spot, Nord Pool, Mutual Energy, EIDAC, EirGrid, SONI and SEMOpx
Through discussions with the Regional Partners it was agreed that the NEMOs applying a single FX rate to the SEM and GB region was the most efficient approach
Avoids the risk of increased costs of FX
Procedurally more straight forward
Avoids the need for additional agreements
Avoids market participants in both SEM and GB needing to manage two rates
A number of options were reviewed including using the ECB rate published on D-2, Bank of England (09:30 GMT D-1), Bloomberg (10:00 GMT D-1)
Ultimately it was agreed that SEMOpx would adopt the rate that is in use in GB today as provided by Nord Pool set at 10:00 GMT
Nord Pool sources the rate from Nordea – one of the largest banks in the Nordics
Rate has been in use in GB for a number of years
Applying a rate closer to Gate Closure for the DAM minimises the exposure to costs of FX

4. Code Objective Furthered
Code objective no. 2: to facilitate the efficient, economic and coordinated operation, administration and development of the Single Electricity Market in a financially secure manner.
Economic benefit: Using a rate that is set closer to gate closure will minimise the exposure between the rate used for the trades and the rate used for settlement
Efficient coordinated operation and administration: Applying a coordinate approach between SEMO and SEMOpx means that market participants in the SEM are only dealing with one FX Rate across the SEMO and SEMOpx markets

5. Proposed Modifications
TSC Section
Modification
Part B G.1.3.3
The Market Operator shall, in relation to each Trading Day, publish a Trading Day Exchange Rate between euro (€) and pounds sterling (£) by 17:00 11:00on the day prior toof the corresponding Gate Closure 1.
Part B Glossary
Trading Day Exchange Rate: means the exchange rate between pounds sterling and euro for the next Trading Day set at 17:00 11:00 on the day before the Trading Daythe day of the Gate Closure 1 published under paragraph G
Part B: Agreed Procedure 6: Data Publication and Data Reporting, Appendix 2, Data Reports
Publication / Data Report Name
Class
Timing
Subscr -ipt
Availab -le via BMI
Confiden tiality
Vali- dity
Daily Trading Exchange Rate D
Two One days prior to the Trading Day - Y
Member Public
Part B: Appendix E, Table 4 – Data publication list part 4: updated daily in advance of the Trading Day
Time
Item / Data Record
Term
Subscript
By 11:0017:00 on the day prior toof the Gate Closure 1 in respect of the Trading Day
Trading Day Exchange Rate between euro (€) and pounds sterling (£) -