News

In response to global gas market development and the requirement of non physical players in the continental European gas markets to participate in that market, RWE Supply & Trading (RWEST) have developed a financially settled swap contract and will provide two-way liquidity in this contract.

The contract enables counterparties to trade gas at the prices of the Dutch Title Transfer Facility (TTF) and comprises fixed price and floating price legs, with the floating price being settled against the London Energy Brokers Association (LEBA) day ahead and weekend window indices for the TTF. The LEBA index comprises the weighted average price of actual trades through the main gas market brokers (currently APX, GFI, ICAP, Spectron and Tullet Prebon) during a 10 minute window between 16:20 and 16:30 London time for the following business day or weekend as appropriate. The contract will be traded under ISDA terms and conditions (www.isda.org)

Full LEBA contract specification can be found on LEBA’s website at http://www.leba.org.uk/

The advantage of this financially settled contract is that it avoids the need for non physical players in the Dutch gas market to sign up to the physical balancing regime of Gas Transport Services, and avoids the need to have to make nominations to the pipeline operator, or be subject to any physical imbalances within the pipeline network, or be subject to cash-out prices on any residual physical position.