Powernext and ECC to introduce measures to further strengthen liquidity in TTF Futures on PEGAS

    Powernext and the clearing house European Commodity Clearing (ECC) are to introduce a series of new measures throughout 2016 in order to further accelerate the positive development of the TTF futures market.  

    In 2015, the volumes traded on the TTF derivatives market via the PEGAS platform operated by Powernext increased to 429 TWh compared to 150 TWh in 2014. In addition, PEGAS set a new record with more than 100 TWh being traded in one month in January 2016.

    Egbert Laege, CEO of Powernext, comments: “These new TTF initiatives will benefit our entire customer base and also attract further customers to trade on this market, thus further strengthening our position on the TTF.”

    A set of measures has been decided for this initiative:

    • Today, the TTF futures market is mainly used for hedging purposes. Therefore, Powernext and ECC will further facilitate physical delivery on this hub. From 1st March, ECC will reduce fees for physical delivery for TTF Futures.
    • Due to increased customer demand, trading hours on PEGAS will be extended in Q2 when the market will begin trading at 8am.
    • Furthermore, in order to address the needs of the financial community Powernext will ease connectivity to the PEGAS platform by enhancing technical connection to the back-end. PEGAS will introduce trading limits for derivatives in Q2 2016 in order to enable participants and clearing banks to better control their risk positions on PEGAS futures.
    • Additionally new initiatives will be introduced in the third quarter which will give traders better flexibility when closing open physical positions.
    • The product portfolio will also be expanded in Q2, giving traders the option to trade TTF four years ahead (Calendar +4).
    • Lastly, STP OTC registration will be further rolled out to strengthen the clearing of off-exchange business.

    Further product initiatives are planned and will be announced in the course of the year.

    Powernext is a regulated market operating under AMF supervision. Powernext manages the natural gas activities of the EEX Group under the PEGAS brand throughout Europe, and operates the National Registry for electricity guarantees of origin in France. For more information: www.powernext.com

    PEGAS is the central gas trading platform of EEX Group operated by Powernext. PEGAS provides its members with access to all products on one single platform and allows them to trade natural gas contracts in the Belgian, Dutch, French, German, Italian and UK market areas. The product range of PEGAS covers spot and derivatives contracts for the major European gas hubs as well as trading in location spread products between these market areas. This setup enables market harmonisation and forms the preferred pan-European natural gas market. For more information: www.pegas-trading.com

    European Commodity Clearing (ECC) is the central clearing house for energy and related products in Europe. In its capacity as the central counterparty ECC assumes clearing as well as physical and financial settlement of transactions concluded on CEGH Gas Exchange of the Vienna Stock Exchange, EEX, EPEX SPOT, HUPX, Gaspoint Nordic, NOREXECO, Powernext and Power Exchange Central Europe, or registered for clearing on these exchanges. www.ecc.de