PEG Sud / PEG Nord Spread products launched Wednesday 25th May on Powernext Gas Spot
Taking great care of market needs & common practices, Powernext Gas Spot improves its market model again by launching PEG Sud / PEG Nord Spread products today. These products are expected to foster liquidity and improve the quality of published price references.
“All Powernext Gas Spot members will be offered the possibility to trade PEG Sud as a spread which is an efficient way to handle positions in highly correlated delivery zones. These products will help our members balance on PEG Sud, and increase the already growing liquidity. This will improve again the quality of our price references and benefit the whole market”, comments Richard Katz, Powernext’s Sales & Communication Director.
This service is offered through Trayport technology, enabling a very short term implementation. Mark Holt, Head of Technology at Trayport comments: “Trayport is proud to be helping Powernext to deliver these products. The addition of the PEG Sud / PEG Nord Spreads represents our continued commitment to supporting the evolution of the European gas markets.”
“The introduction of spread products is the first step towards our coupling project initiated with Powernext in January. GRTgaz will start offering spreads as soon as July this year, but will already benefit from an increased liquidity for its balancing interventions” says Philippe Garnier, GRTgaz’s Chief Strategy & Marketing Officer.
Powernext Gas recently welcomed Goldman Sachs International as a trading member on its Spot and Futures segments, bringing the overall number of members up to 39. ICAP Energy Limited as well as Global Commodities also started as Registering Brokers to access the OTC Clearing service.
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. An OTC Clearing service was launched in November 2010 to allow bilateral and OTC trades to be registered on the Exchange. 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.