EEX to enable trading for new German Gas market Trading Hub Europe (THE) with existing NCG products
After close consultation with market participants, the European Energy Exchange (EEX) has decided to enable the trading of Trading Hub Europe (THE) Futures within the existing NCG order books.
On 1 October 2021, the current market areas in Germany, Gaspool (GPL) and NetConnect Germany (NCG), will be merged into a new nationwide gas market Trading Hub Europe (THE). In order to simplify the technical connection for the whole trading community while avoiding any liquidity split in the German market, EEX trading participants will be able to trade THE Futures within the current EEX NCG Futures contract from now on. From 1st October 2021, the current NCG order book will be renamed as THE to continue Spot and Futures trading for the new Trading Hub Europe market area.
EEX has previously supported the merger of the two French hubs TRS and PEG Nord into the common market area PEG, which boosted liquidity in the newly created nationwide French market.
Dr Tobias Paulun, Chief Strategy Officer at EEX, says: “With Trading Hub Europe (THE), EEX is continuing to shape the future of the European gas market. From our experience with the French zone merger, we know that the synchronisation of efforts with all market participants is crucial to ensure that the entire market is aligned and that no split of liquidity is encountered. By enabling our members to trade THE within the current EEX NCG Futures contract from today on, we can start building the liquidity of tomorrow”.
Jörg Ehmke, Managing Director of GASPOOL, says: “The merger of two gas markets into one nationwide German gas market is a huge challenge, which implies the joint work of different players driven by the same ambition: making THE one of the most attractive and liquid gas trading hubs in Europe”.
In 2017, the decision was made to merge the two German gas markets, Gaspool (GPL) and NetConnect Germany (NCG), into a new nationwide gas market. EEX remains committed to supporting the German gas infrastructure providers, regulatory bodies and market participants in order to design this new common gas market for Germany with the aim of becoming one of the most liquid hubs in Europe.
"Both the GASPOOL and NCG market areas have developed significantly over the past years. I am confident that our consolidation into one single market will benefit the whole market and I am looking forward to beginning this new chapter of the German gas story with THE futures trading at EEX,” says Torsten Frank, Managing Director of NetConnect Germany.