The European Energy Exchange (EEX) is continuing the expansion of its natural gas market. On 30 May 2011, EEX will launch 24/7 gas trading and, as a result, enable its trading participants to take part in short-term physical trading in natural gas 24 hours a day and seven days a week.
At the same time, the market areas connected to exchange trading on EEX (GASPOOL and NCG) will be expanded with the Dutch TTF market area. This is facilitated by the successful recognition of EEX as a gas exchange in the Netherlands which was granted recently by the Dutch Ministry of Economic Affairs.
“EEX will consistently continue the strategically important expansion of its natural gas market”, explains Chief Operating Officer Dr. Christoph Mura. “These measures will make the Spot Market even more attractive to our trading participants. We expect a positive impact on the liquidity”, adds Dr. Mura. “This step will bring us closer to our aim of continuing our growth in the gas market and also setting the recognised reference price in this segment.”
The tradable products will comprise Within-Day contracts with a minimum lot size of 1 MW and Day contracts with a minimum lot size of 10 MW for delivery in the GASPOOL, NCG and TTF market areas. In addition, EEX will also introduce Daycontracts with a minimum lot size of 1 MW in continuous trading which will replace the auction on the Spot Market for Natural Gas currently held in the afternoon. Upon the introduction of products in the TTF market area trading in natural gas will be possible across the different qualities – H gas and L gas – for the first time. As of the launch date EEX will switch its Spot Market for Natural Gas to the ComXerv trading system.
“The introduction of 24/7 trading in gas enables our trading participants to engage in exchange trading even on weekends, which might lead to a considerable reduction, e. g. in the costs for control energy. With the TTF market area we are integrating an important European trading hub into gas trading on EEX. Moreover, the introduction of continuous trading in 1 MW contracts will also bring smaller volumes to the exchange”, Managing Director Exchange Oliver Maibaum explains the advantages of expanded trading on the Natural Gas Spot Market.
The launch of 24/7 trading and the expansion of the market areas into the Netherlands constitute important milestones for the implementation of the growth plans in the natural gas segment. In January, EEX launched the European Gas Index (EGIX). Thus, the exchange provides a transparently established gas price index which can gradually replace or supplement gas supply contracts based on natural gas substitutes.
The European Energy Exchange (EEX) develops, operates and connects secure, liquid and transparent markets. EEX holds 50 percent of the shares in EPEX Spot SE, which operates the Spot Market for Power for Germany, France, Austria and Switzerland. The German and French Derivatives Market for Power is concentrated within EEX Power Derivatives GmbH, a majority-owned subsidiary of EEX with registered offices in Leipzig. Furthermore, EEX offers spot and derivatives trading in natural gas and CO2 emission allowances as well as trading in financial coal futures. EEX Group also includes European Commodity Clearing AG (ECC), the central clearing house for energy and related products in Europe.
