EEX to launch cash-settled gas futures on European index

European Energy Exchange AG

12/11/2020 14:37

FRANKFURT, Nov 12 (Reuters) - The European Energy Exchange
(EEX) plans to launch cash-settled gas futures on its European
Gas Spot Index (EGSI) as well as associated spark spreads -
power generation margins for gas burning - in the first quarter
of 2021, it said on Thursday.
    The new futures products will be listed in the Dutch,
Austrian and German market zones, covering short-term deliveries
for days, weekends and weeks, and stretching to longer-term
maturities for months, quarters, seasons and calendar years, it
said in a statement.
    "The launch of these cash-settled contracts will enable
easier access to the European gas markets for financial firms
who do not require physical delivery (of gas) while at the same
time allowing all parties to trade at the EGSI index price for
hedging purposes," it said.
    The EEX, part of Deutsche Boerse  DB1Gn.DE , is the most
liquid spot gas trading bourse in Europe, alongside wider
over-the-counter (OTC) markets. urn:newsml:reuters.com:*:nL8N2EG3VF
    The EGSI calculates all trades during one day, making it a
suitable reference for financially settled futures, said chief
strategy officer Tobias Paulun.
    The introduction of cash-settled gas futures will also
enable EEX members to trade the price difference between gas and
power futures, simplifying hedging of gas fired power plants and
creating a bridge between the two derivatives markets, said
chief operating officer Steffen Koehler. 

 (Reporting by Vera Eckert, editing by Mark Potter)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))