TRAYPORT TO PROVIDE EXCHANGE TRADING SYSTEM FOR BALKAN GAS HUB ORGANISED MARKET
The primary network and platform for European wholesale energy markets to expand its broker and exchange connectivity by supporting the launch of a new gas trading hub in Bulgaria
November 18, 2019 (LONDON and SOFIA) - Trayport Limited (Trayport), a wholly owned subsidiary of TMX Group, and Balkan Gas Hub EAD, a Bulgaria based commodities and derivatives OTC and exchange market operator, today announced an agreement for the implementation of Trayport‘s Exchange Trading System (ETS) for Balkan Gas Hub trading.
‘We are pleased that Balkan Gas Hub has chosen Trayport for the launch of the first Bulgaria based liquid physical and gas trading hub,’ said Richard Everett, Chief Operating Officer, Trayport. ‘We are committed to supporting the growth of energy trading markets globally, and Balkan Gas Hub will now join the growing list of over 40+ brokers and exchanges that our network supports. We look forward to working towards a successful implementation.’
Trayport’s ETS is a powerful, real-time matching engine and front end trading system designed specifically to enable commodity exchanges to host an electronic marketplace. The ETS is widely used to organise both physical and financial markets, and provides exchanges with a single solution for transparent price dissemination, matching of interest and running of orderly markets. With ETS, exchanges can offer their trader clients direct access to market liquidity via Trayport’s Joule trading screen, Europe’s leading electronic trading solution for energy markets.
‘The launch of the new gas market is an important milestone in the development of energy trading in Bulgaria,’ said Kiril Ravnachki, Executive Director, Balkan Gas Hub. ‘We wanted to capitalise on Trayport’s significant experience and needed a provider with proven technology. The new platform aims to bring together many participants in gas trading, including those from the wider region, and we expect this initiative will deliver the long term benefits already experienced in other markets.’
Balkan Gas Hub will initially introduce OTC and exchange contracts that best fit the needs of Bulgarian market participants. This includes short term standardised products according to the Network Code for balancing and standardised OTC long term contracts (month, quarters, season, calendar and multiple calendar). A template Master Agreement for gas delivery to serve the needs of the Bulgarian market will be also available as an option for any OTC trading market participants.
Contracts planned for launch include:
- Gas release programme (GRP service);
- Short term segment (cleared);
- Short term segment (non-cleared/ with credit matrix);
- Long term futures segment (cleared);
- Long term futures segment (non-cleared/ with credit matrix).
Balkan Gas Hub will be consulting with market participants and the Bulgarian NRA as we work towards a go-live date at the start of 2020.
About Trayport Limited
Trayport is the primary network and platform for European wholesale energy markets. Our network and solutions support the growth of our clients and trading markets. Our solutions are used worldwide by traders, brokers and exchanges in multiple asset classes across OTC and cleared markets. Trayport limited is a wholly-owned subsidiary of TMX Group Limited (TMX Group). For more information about Trayport Limited, visit our website at www.trayport.com.
About Balkan Gas Hub EAD
Balkan Gas Hub ЕAD will operate a trading platform servicing the needs of the natural gas markets within the Balkan gas hub. In synergy with the physical infrastructure, the prerequisites required for establishment of the first, Bulgaria based, liquid trading gas hub in the South Eastern Europe region will be provided. The company would contribute to the increase in liquidity of the natural gas market in Bulgaria and the region of South Eastern Europe. The portfolio of products is consisting of Gas release program segment contracts, short term OTC and cleared contracts, and long term OTC and cleared contracts.