FactSheet

CHANGING EUROPEAN NATURAL GAS DYNAMICS

As the world continues to focus on ways to generate clean, secure and affordable energy, natural gas is playing an increasingly important role in meeting these goals in Europe as well as the rest of the world. Natural gas is an important source of energy, which also supports the development of a lower-carbon economy.

With increased trade in physical natural gas across Europe and beyond, energy producers and end users are increasingly looking to manage their price risk using futures contracts in order to lock in the price of gas today for delivery at a specific point in the future. Reflecting regional trends, ICE has seen a rise in liquidity and trading volumes for European natural gas futures in recent years, particularly across the UK National Balancing Point (NBP) and Dutch Title Transfer Facility (TTF) hubs which provide governments, consumers, energy firms and other end users with reliable and transparent price benchmarks and data.

Customers trading European natural gas contracts on the ICE platform can benefit from direct market access to liquid and centrally cleared derivatives markets, gas balancing markets, as well as gas storage services for the major European gas hubs. ICE’s natural gas contracts are centrally cleared at ICE Clear Europe, so customers can benefit from significant capital efficiencies through margin offsets across ICE’s natural gas and wider energy portfolio.


HOW TO TRADE

TRADING MECHANISMS

  • Screen — through WebICE or ISV
  • Block — bilateral off-screen futures trading facility
  • EFP — facility to register OTC physical transactions as ICE futures
  • EFS — facility to register OTC financial transactions as ICE futures

BENEFITS OF TRADING ICE NATURAL GAS

  • Liquid, on screen futures
  • Offers numerous outright and spread trading opportunities
  • Physically deliverable product — convergence with the spot market
  • Independent volatility profile
  • Capital efficiencies as a result of margin offsets with other ICE contracts


  • Competitive fee structure
  • Contracts listed out to 2021: consecutive monthly, quarterly, seasonal, and calendar contracts
  • Appointed as official operator for TTF, ZTP & NBP gas balancing markets

RISING VOLUMES & OPEN INTEREST (OI)

NATURAL GAS FUTURES TRADING PARTICIPANTS

CROSS COMMODITY MARGIN OFFSETS

FURTHER INFORMATION

Questions about trading Natural Gas?

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