OTC Clearing Service:
In the scope of a constant improvement of its market model, and considering members’ needs expressed during a study performed over the summer, Powernext Gas will offer an OTC Clearing Service in complement of its Futures market. Other product upgrades will also be available on the spot market.
“All Powernext Gas Futures members will be offered the possibility to register their OTC transactions for clearing purposes by Powernext. This service will help our members access the OTC trading with a simplified management of bilateral credit, settlement and delivery”, comments Richard Katz, Powernext’s Sales & Communication Director.
Among other evolutions, Powernext Gas Spot members will be able to trade the Week-End contracts as early as Thursday and a Within-Day contract will be launched on PEG TIGF.
Theses services will be launched second half of October, pending members and brokers technical readiness.
Over the past summer, Powernext Gas welcomed 4 new members (Antargaz, BP Gas Marketing Limited, EGL AG and J.P. Morgan Securities Ltd.), bringing the overall number of members up to 35. Upcoming starts will be announced shortly.
“Almost 2 years after the launch of the gas Exchange, introducing an OTC Clearing service will boost derivatives trading on PEGs, and hence benefit the whole market,” comments Jean-François Conil Lacoste, CEO of Powernext.
Powernext SA, incorporated in 2001, manages several complementary, transparent and anonymous energy markets: Powernext Gas Spot and Powernext Gas Futures were launched on November 26, 2008 in order to hedge volume and price risks for natural gas in France from Within-Day to the next three gas seasons. Since 1st December 2009, Powernext Gas Spot also allows the Transmission System Operator GRTgaz to progressively cover parts of its daily balancing needs on the market. EPEX Spot, based in Paris and owned equally by Powernext and by EEX, the German energy organized market, was launched on January 1st 2009 and facilitates, 365 days a year, the hourly balancing of physical power delivered the following day on the French, German/Austrian and Swiss hubs. In April 2009, Powernext contributed the French power derivatives to EEX Power Derivatives, a company dedicated to European power derivatives, based in Leipzig, against a 20 percent equity stake in this company.