Analyzing the impact of futures trading on spot price volatility: Evidence from the spot electricity market in France and Germany

► We study the futures trading introduction impact on the spot price volatility of the French and German electricity markets. ► This impact was negative on the spot price volatility in the French market but not as strong for the German market. ► The launch of the joint futures market in 2009 decreased further the spot price volatility in both countries. ► The German prices Granger cause French prices, while the CCDs have a greater impact on demand in both markets. ► Seasonality was detected in electricity prices and their respective volatilities during weekdays and holidays.