Exchange Council welcomes successful product development in EEX Natural Gas markets

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Exchange Council welcomes successful product development in EEX Natural Gas markets

The Exchange Council of the European Energy Exchange (EEX) has welcomed the good preparation of the upcoming gas makets merger in Germany as well as the positive developments of the new Gas Financial Futures.

On 1 October 2021, the two gas markets GASPOOL (GPL) and NetConnect Germany (NCG) will merge into one German nationwide market area named Trading Hub Europe (THE). A number of EEX teams have been working to support all market players and stakeholders with this change, especially by providing trading solutions which will facilitate the smoothly merging of two hubs into one. 

The new nationwide German market area is a milestone for the further development of German gas trading, resulting in a uniform German reference price and bringing more liquidity and competitiveness. As a leading platform for gas trading in Germany, EEX will introduce 13 new zonal gas quality-specific products in the THE Spot market. Both physical gas futures and new financial gas futures (EGSI Futures) will be available for trading on the new THE market area.

In addition, the Exchange Council has welcomed the positive development of the EEX Financial Gas Futures cash-settled against the European Gas Spot Index (EGSI) which were introduced in June 2021. EGSI Futures cover the whole curve from short term (Day Futures, Weekend and Week contracts) to longer term maturities (Month, Quarter, Season and Calendar Year). As they mirror power futures curves, they enable EEX members to trade the price difference between financial gas futures and existing highly liquid financial power futures via dedicated Spark Spreads. EGSI Futures have seen strong and rising interest across the European markets over the summer, attracting players from the traditional gas trading community and financial companies. Record participation rates were reported on the Dutch TTF hub and the first trade was also registered on the Austrian CEGH in the past weeks, paving the way for further liquidity.

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