Tullett Prebon Plc, the London-based inter-dealer broker, hired a team of three brokers from CIMD SA in Madrid to expand its services in Spain’s over-the-counter electricity market.
Pablo Cabello, Carmen Nunez and Patricia Lopez joined Tullett last month, Kevin McDermott, a Tullett Prebon director for European energy and commodities, said today by e-mail. The new hires are based in London, and the company will open a Madrid office in May or June, McDermott said.
“We wanted to add Spain to complete the puzzle of total coverage of European power,” he said. “These brokers are regarded as the best in the product by our customers.”
Power-trading volumes in Spain rose 5 percent in 2009 to 399 terawatt-hours, according to a report published last year by London-based consultant Prospex Research Ltd. Electricity consumption on the Spanish peninsula, excluding the islands, rose 2.9 percent to 259.9 terawatt-hours last year according to grid operator Red Electrica Corp. SA.
That gives Spain a so-called churn rate, trading volume divided by physical consumption, of about 1.5. In Germany, Europe’s biggest consumer and the most liquid market, the churn rate was 8.4 in 2009, according to Prospex.
Tullett, which competes in Europe’s over-the-counter energy markets with brokers including ICAP Plc, GFI Group Inc. and Tradition Financial Services, also offers electricity contracts in markets including Germany, France, the U.K., the Netherlands, Belgium, Italy and eastern Europe.