EEX to expand gas portfolio with launch of Financial Gas Futures on European Gas Spot Index (EGSI)

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The European Energy Exchange (EEX) will expand its gas derivatives portfolio on the 28 June 2021 with the launch of Financial Gas Futures.

The new contracts will be listed on the Dutch (TTF), Austrian (CEGH) and German (NCG – to be replaced by THE in October 2021) market areas and settled against the European Gas Spot Index (EGSI), the most credible and transparent gas price index in Europe.  

As the No 1 gas spot exchange in Europe, EEX has continued to shape the gas spot market by offering a portfolio of customized products and services to physical players and infrastructure operators. Currently, EEX holds more than 60 per cent of the market share in Europe’s largest gas spot markets (Netherlands, Germany, Austria and France).  

From this position, EEX has been able to provide its customers and the market with a robust and reliable price index: the EGSI (European Gas Spot Index). The new EGSI Financial Gas Futures will result in a closer alignment between the Spot and Futures markets, giving customers the opportunity to trade on a more liquid market.  

Dr Tobias Paulun, Chief Strategy Officer of EEX, comments: “With traded volumes on the European gas hubs continuing to rise in recent years, this is the perfect time to launch the EGSI Futures contracts. The new EGSI Futures will eliminate the burden of physical fulfilment while aligning with the standards of the highly liquid power market”. 

As the No 1 exchange in Power trading worldwide for the last four consecutive years, EEX Group has a proven 20-year track record in building successful power markets with its German Power Futures contract widely regarded as the benchmark power product for Europe. In launching the EGSI Financial Gas Futures, EEX will create a bridge between the Gas and Power Derivatives markets, allowing EEX customers to trade the price differential between the new Gas Futures and existing Power Futures via Spark Spreads.  

Steffen Köhler, Chief Operating Officer of EEX, says: “I’m confident that through the EEX Spark Spreads, our customers will be able to leverage the strong liquidity seen in power for their exposure in gas while benefitting from the significant cross-margining effects. Furthermore, by offering guaranteed price and execution, our customers are able to make better hedging decisions.” 

The new EEX EGSI Financial Gas Futures will be available for trading via orderbook and trade registration on all EEX exchange days during the regular trading hours from 8:00 to 18:00 pm CET. All trading participants already admitted at EEX for trading Natural Gas Futures for the market areas TTF, NCG or CEGH VTP, will automatically be able to trade the EEX EGSI Futures for the respective market area.