Agenda. Introducing ECC incl. ECC benefits Services at a glance The

Transcription

1 Agenda 24/7 trading Pre Launch Meeting September 16th Welcome and introduction [ ] Background / new balancing model Change in ownership General change overview per October New contract specification [ ] 24/7 trading Contract specifications Revised price determination process New Trayport screen 3. Cut over by October 1st [ ] Ambition to avoid position transfer limit operation risks Changes to trading calendar The transition from Nord Pool Spot to ECC Lunch break [ ] 4. New clearing partner ECC [ ] Introducing ECC incl. ECC benefits Services at a glance The Member area: Reporting and data access Risk Management, Margining and Post Trade Limits Comfort/cafe break [ ] 5. EEX Market supervision [ ] Introducing EEX market supervision Service overview / on hours and off hours Introducing order alert Trading errors: Mistrade range recall fee Maintenance in a 24/7 setup 6. AOB [ ]

2 Agenda 24/7 trading Pre Launch Meeting September 16th Welcome and introduction [ ] Background / new balancing model Change in ownership General change overview per October New contract specification [ ] 24/7 trading Contract specifications Revised price determination process New Trayport screen 3. Cut over by October 1st [ ] Ambition to avoid position transfer limit operation risks Changes to trading calendar The transition from Nord Pool Spot to ECC Lunch break [ ] 4. New clearing partner ECC [ ] Introducing ECC incl. ECC benefits Services at a glance The Member area: Reporting and data access Risk Management, Margining and Post Trade Limits Comfort/cafe break [ ] 5. EEX Market supervision [ ] Introducing EEX market supervision Service overview / on hours and off hours Introducing order alert Trading errors: Mistrade range recall fee Maintenance in a 24/7 setup 6. AOB [ ]

3 Background / new balancing model Energinet.dk will implement new balancing model as per October 2014 closely aligned with the European Network Code on Balancing (NC BAL) Daily balancing, frequent DMS data deliveries, full cash out by end of day Energinet.dk interaction in the Gaspoint Nordic (WD product) market based on clearly defined and transparent procedures

4 Background / new balancing model TSO within day trading activity: When E(System Commercial Balance) enters yellow zone and Energinet.dk interacts with the market by rules that are public and transparent to the market participants Energinet.dk will act as aggressor and will start taking the best bids from xx:05 until the full volume Energinet.dk needs are taken Energinet.dk aspire to inform the market about trading needs (position long/short) through appropriate communication channels in order to minimize the workload Gaspoint Nordic will support the balancing model by offering 24/7 trading

5 Change in ownership becomes co-owner Energinet.dk sell 50 percent of shares to German energy exchange EEX EEX is a leading European play operating exchange trading in multiple energy products and market areas (NCG, GASPOOL, TTF) EEX operates regulated markets under the German exchange act and is subject to comprehensive supervision. The transaction still awaits the approval of the competitions authorities 50percent 50percent

6 Change in ownership What to expect from the new ownership? Gaspoint Nordic move closer towards Europe - less hassle and barriers to entry and better commercial connectivity Oct 1 st Oct 1 st : New ECC clearing More room for development do to economies of scale and access to knowledge base

7 General change overview - timeline March 2014 May 21 st 2014 June 11 th 2014 July 3 rd 2014 New ENDK balancing rules (NC on Balancing) New clearing partner ECC EEX to become co-owner New contract specifications August 19 th 2014 September 2 nd 2014 September 8 th 2014 October 1 st 2014 delivery Adjustments to trading calendar ahead of Oct 1 st Revised price determination process Revised GPN rules and regulation Cut over and 24/7 go live

8 General change overview partnership and service providers before October 1st 2014 By/after October 1st 2014 Documentation Clearing services Contract delivery before Oct 1 st: Spot clearing provided by Nord Pool Spot. Settlement directly against participants (NCMs) Contract delivery on/after Oct 1 st: Spot and derivative clearing provided by ECC. Settlement indirectly through CM (clearing banks) against NCMs e5640d4217d687be a 8d/ detailedinformation-launch-etf-naturalgas-contracts-gaspoint-nordicdata.pdf Market supervision Handled by NPG team Handled by EEX team 24/7 Trading fee invoicing Direct NPS debit based on settlement report Direct ECC debit based on electronic invoice (user GUI)

9 General change overview trading before October 1st 2014 Trading hours Weekdays Weekdays/holidays (WD only) By/after October 1st 2014 DA, WE: 24/7 ( ) WD: 24/7 ( ) Month: Weekdays ( ) Documentation wp-content/uploads/contract- Specifications-Gaspoint-Nordic- V.1.0-Final.pdf Trading calendar Danish banking days with some UK adaptations UK Calendar (plus Target 2 for month ahead) wp-content/uploads/contract- Specifications-Gaspoint-Nordic- V.1.0-Final.pdf Contract specifications DK specific European standards (PEGAS) wp-content/uploads/contract- Specifications-Gaspoint-Nordic- V.1.0-Final.pdf Trading Screen Trayport DK specific Trayport PEGAS aligned

10 General change overview - process before October 1st 2014 By/after October 1st 2014 Documentation Reference price determination process Volume weighted average (09-15) published per trading day or delivery day Volume weighted average (24/7) published per trading wp-content/uploads/referenceprices-october-2014-final.pdf Gaspoint Nordic Spot index determination process Volume weighted average (weekdays 09-15) published per delivery day Volume weighted average (weekdays 09-18) published per delivery day wp-content/uploads/gaspoint- Nordic-Spot-Index-October FINAL.pdf Trading errors - recall and mistrade rules Cancellation: 1. Wide trading range or 2. mutual consent Cancellation: 1. Recall fee on spot trades 2. Mistrade rules on trading range wp-content/uploads/app-1- Physical-Market-Regulations- October-2014.pdf Positions limits N.a. Post trade position limits wp-content/uploads/exchange- Rules-Gaspoint-Nordic-October pdf Invoicing Direct NPS debit based on settlement report Direct ECC debit based electronic invoice (member GUI) 932e4b181adbcd04a9186a4cbe1b 80/ecc-member-area-userguide-data.pdf

11 General change overview cut over by October 1 st Changes to trading calendar Clearing /settlement Trayport connection Trayport trading Screen before October 1st 2014 Not Tradable: During Sep: Oct-14 Sep 29 th and 30 th : - 2/3 days ahead - Weekend - BOM NPS clearing: All contracts taking delivery on/before Sep 30 th GPN server migration by COB Sep 19 th new front end installer provided By/after October 1st 2014 Launch 8.30 Oct 1 st 24/7 trading (Month contract on weekdays) ECC clearing: All contracts taking delivery on/after Oct 1 st No changes No changes New screen setup / products loaded by reconnect on Oct 1 st Documentation wp-content/uploads/contract- Specifications-Gaspoint-Nordic- V.1.0-Final.pdf wp-content/uploads/contract- Specifications-Gaspoint-Nordic- V.1.0-Final.pdf

12 Agenda 24/7 trading Pre Launch Meeting September 16th Welcome and introduction [ ] Background / new balancing model Change in ownership General change overview per October New contract specification [ ] 24/7 trading Contract specifications Revised price determination process New Trayport screen 3. Cut over by October 1st [ ] Ambition to avoid position transfer limit operation risks Changes to trading calendar The transition from Nord Pool Spot to ECC Lunch break [ ] 4. New clearing partner ECC [ ] Introducing ECC incl. ECC benefits Services at a glance Member area: Reporting and data access Risk Management, Margining and Post Trade Limits Comfort/cafe break [ ] 5. EEX Market supervision [ ] Introducing EEX market supervision Service overview / on hours and off hours Introducing order alert Trading errors: Mistrade range recall fee Maintenance in a 24/7 setup 6. AOB [ ]

13 24/7 trading starts October 1 st 2014 The Danish market get in sync with the rest of Europe and supports the new balancing regime We expect improved liquidity since most Gaspoint Nordic reference prices will be even more competitive and closer related to adjacent markets to the befit of both large and small end consumers Products with 24/7 trading WD (Withinday) DA (Day) WE (Weekend) Products without 24/7 trading Month-ahead (08:30 18:00) 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Before Oct Tradng weekdays One hour ( ) other days After Oct Trading all day 24/7 365 days The trading starts kl 03.00

14 Conclusion of Beginning of delivery/ Contract volume Contract specifications trade between delivery period in MWh 02:00-03:00 06:00-06:00 (T+1) 24 GPN Natural Gas Within Day trading and delivery periods Today trading takes place from 09:00 to 15:00 Fixed delivery period from 18:00 to 06:00 (Technically from 05:00 to 06:00) 03:00-04:00 07:00-06:00 (T+1) 23 04:00-05:00 08:00-06:00 (T+1) 22 05:00-06:00 09:00-06:00 (T+1) 21 06:00-07:00 10:00-06:00 (T+1) 20 07:00-08:00 11:00-06:00 (T+1) 19 08:00-09:00 12:00-06:00 (T+1) 18 09:00-10:00 13:00-06:00 (T+1) 17 10:00-11:00 14:00-06:00 (T+1) 16 11:00-12:00 15:00-06:00 (T+1) 15 12:00-13:00 16:00-06:00 (T+1) 14 13:00-14:00 17:00-06:00 (T+1) 13 14:00-15:00 18:00-06:00 (T+1) 12 15:00-16:00 19:00-06:00 (T+1) 11 16:00-17:00 20:00-06:00 (T+1) 10 New WD regime 17:00-18:00 21:00-06:00 (T+1) 9 18:00-19:00 22:00-06:00 (T+1) 8 19:00-20:00 23:00-06:00 (T+1) 7 20:00-21:00 00:00-06: :00-22:00 01:00-06: :00-23:00 02:00-06: :00-00:00 03:00-06: :00-01:00 (T+1) 04:00-06: :00-02:00 (T+1) 05:00-06:00 1

15 Trading period Contract specifications GPN Natural Gas Day (DA) trading and delivery periods in a normal week The DA product rolls at 03:00 to the next trading day Friday it is possible to trade the WE (Weekend), Saturday, Sunday and DA (Monday) contract. Monday Delivery period Monday Tuesday Wednesday Thursday Friday Saturday Sunday Tuesday Wednesday Thursday Friday Saturday Sunday

16 Trading period Contract specifications GPN Natural Gas Day (DA) trading and delivery periods in a week with UK bank holiday Example: Monday is a UK bank holiday A separate Monday contract will be opened which can be traded: Friday, Saturday and Sunday, as can the DA (Tuesday) contract Monday Delivery period Monday Tuesday Wednesday Thursday Friday Saturday Sunday Tuesday Wednesday Thursday Friday Saturday Sunday

17 Trading period Contract specifications GPN Natural Gas Weekend (WE) trading and delivery periods in a normal week The WE product rolls at 03:00 Saturday to the next delivery period and opens again Thursday at 03:00. Thursday and Friday it is possible to trade the WE (Weekend), Saturday and Sunday contract Saturday it is possible to trade the Sunday contract Cascading Immediately after the conclusion of the trade, each Weekend Contract is replaced by the corresponding Day Contracts whose Delivery Periods together correspond to the Weekend Contract. Monday Delivery period Monday Tuesday Wednesday Thursday Friday Saturday Sunday Tuesday Wednesday Thursday Friday Saturday Sunday = WE = Day (Sat) = Day (Sun)

18 Trading period Contract specifications GPN Natural Gas Weekend (WE) trading and delivery periods in a week with UK bank holiday The Delivery Period also comprises delivery days before and after a weekend, which are bank holidays in Great Britain. : Monday is a UK bank holiday The UK bank holiday (Monday) is included in the WE contract A separate Monday contract will be opened which can be traded: Friday, Saturday and Sunday : Friday is a UK bank holiday Delivery period Tuesday Wednesday Thursday Friday Saturday Sunday Monday Monday Tuesday Wednesday Thursday Friday Saturday Sunday

19 Contract specifications GPN Natural Gas Month-Ahead Contract trading and delivery periods The Delivery Period equals the delivery days in the month ahead The last Trading Day of the Month Ahead Contract is two Exchange days before the first delivery day of the delivery month Example of the last/first trading days of the Nov-14 / Dec-14 Month Ahead Contracts Trading day.. Wed Thu Fri Sat Sun Mon Delivery period.. Nov-14 Nov-14 Dec-14 No trading No trading Dec-14.. Trading hours GPN Natural Gas Month-Ahead Contract: Exchange Days, 8:30 a.m. 6:00 p.m. Settlement and Collateral will be explained further in the ECC presentation

20 Revised Price Determination Process Reference price determination Reference prices will still be made for all products Due to 24/7 trading reference prices will be published approximately 09:30 CET in the morning of the first exchange day following the last 24 hour trading session. Friday traded products will therefore normally first be published the following Monday. Will still be volume weighted averages of all trades in the trading window of the given product

21 Revised Price Determination Process Gaspoint Nordic Spot Index Determination Any day with DA contract delivery 1. A volume weighted average of all DA trades conducted within business hours (9.00 the last Exchange day before the delivery day CET) on 2. If no DA trades are conducted the Gaspoint Nordic Spot Index will be based on the last valid DA price spread recorded before CET on the last Exchange day before the delivery day 3. If neither any DA trades are conducted nor any valid price spread is registered the Gaspoint Nordic Spot Index will be deemed identical to the Gaspoint Nordic Spot Index of the previous delivery day Any day without DA contract delivery (e.g. Saturday, Sunday and other holidays) 1. A volume weighted average of all Day trades, including any Weekend trades (with identical delivery day) conducted within business hours ( CET) on the last Exchange day before the delivery day 2. If no Day nor any Weekend trades are conducted the Gaspoint Nordic Spot index will be based on the last valid Day or Weekend price spread recorded before CET on the last exchange day before the delivery day 3. If neither any Day trades nor any Weekend trade are conducted and no valid Day or weekend price spread is registered the Gaspoint Nordic Spot Index will be deemed identical to the Gaspoint Nordic Spot Index of the previous delivery day Determination of a valid price spread 1. The Ask (selling order) amounts to no more than 110 percentage of the Bid (buying order). 2. The price spread is based on orders placed by two different trading participants or one participant only if the orders are tradable for at least 10 minutes

22 Revised Price Determination Process Determination of the daily settlement price By October 1st 2014 Gaspoint Nordic will start publishing a daily settlement price for the Month Ahead contract. The settlement price is established for the purpose of the execution of all clearing processes, specifically for the calculation of the variation margin. The settlement price is established and published on all exchange days based on the order book situation during the settlement window from to CET. Further information on how the daily reference prices, The Gaspoint Nordic Spot Index and the Settlement price are established can be found in designated documents published on the Gaspoint Nordic webpage.

23 New Trayport screen

24 Agenda 24/7 trading Pre Launch Meeting September 16th Welcome and introduction [ ] Background / new balancing model Change in ownership General change overview per October New contract specification [ ] 24/7 trading Contract specifications Revised price determination process New Trayport screen 3. Cut over by October 1st [ ] Ambition to avoid position transfer limit operation risks Changes to trading calendar The transition from Nord Pool Spot to ECC Lunch break [ ] 4. New clearing partner ECC [ ] Introducing ECC incl. ECC benefits Services at a glance The Member area: Reporting and data access Risk Management, Margining and Post Trade Limits Comfort/cafe break [ ] 5. EEX Market supervision [ ] Introducing EEX market supervision Service overview / on hours and off hours Introducing order alert Trading errors: Mistrade range recall fee Maintenance in a 24/7 setup 6. AOB [ ]

25 Cut over by October 1 st 2014 Cut over... Deals with legal, operational, technical changes related to the commencement of ECC clearing Is a detailed description of the changes ECC and Gaspoint Nordic will impose on the trading participants before/on/after October 1 st The overall goal is to : Minimize complexity and Gaspoint Nordic Impose as little change or exceptions to the day to day trading Minimize operational exposure/ risk We therefore have decided: Not to transfer any open positions between NPS and ECC whereby Adjustment/limitations to trading has been necessary so Trades conducted before Oct 1st all take delivery before Oct 1st and gets cleared settled by NPS - except for DA trading on Sep 30 th! DA trading on Sep 30 th is cleared and settled by ECC

26 Cut over by October 1 st 2014 Withinday contract

27 Cut over by October 1 st 2014 Day-Ahead contract

28 Cut over by October 1 st 2014 Current trading calendar: Allows for trading on Danish banking days plus one day Allows for limited trading (WD ) on weekend and Danish holydays Maturities has been added (trading more days ahead) on Fridays ahead of UK holidays to cater for UK based trading floors not present on those Mondays Experience show that days with conflicting DK/UK holidays the market somewhat suffers from low liquidity Trading calendar by October 1st 2014: Allows for 24/7 trading on all day 365 days a year. Applies to all spot contracts: DA, WD, WE Allows for month ahead trading ( ) on all Exchange days (Monday to Friday UK holidays and May 1 st (9 days in total annually)

29 Release of Nord Pool Spot Agreements Nord Pool Spot will terminate and return all agreements The goal is to release participants from all agreements towards Nord Pool Spot as early as possible thus respecting the termination notice in the Clearing Agreement and securing final settlement transactions towards Nord Pool Spot. Clearing Agreement A termination letter has been sent to all participants from Nord Pool Spot The Clearing Agreement is terminated with 3 months notice Bank guarantee Preconditioned that final delivery and payment have been fulfilled according to the settlement report the bank guarantee will be released and returned to your bank. Nord Pool Spot starts releasing and returning the guarantees from October 3 rd Cash Account Agreement Preconditioned that final delivery and payment have been fulfilled according to the settlement report the Cash Account Agreement will be cancelled by Nord Pool Spot. Nord Pool Spot starts cancelling and returning the Cash Account Agreement from October 3 rd 2014.

30 Release of Nord Pool Spot agreements - timeline September 30 th 2014 October 1 st 2014 October December 3 rd Last: trading and delivery day with NPS clearing nomination from NPS settlement report from NPS NPS buyer debit NPS seller credit NPS starts releasing and returning: Bank guarantee Cash account agreement* Termination date of Clearing Agreement * Preconditioned that payments and delivery have been fulfilled by participants.

31 Agenda 24/7 trading Pre Launch Meeting September 16th Welcome and introduction [ ] Background / new balancing model Change in ownership General change overview per October New contract specification [ ] 24/7 trading Contract specifications Revised price determination process New Trayport screen 3. Cut over by October 1st [ ] Ambition to avoid position transfer limit operation risks Changes to trading calendar The transition from Nord Pool Spot to ECC Lunch break [ ] 4. New clearing partner ECC [ ] Introducing ECC incl. ECC benefits Services at a glance The Member area: Reporting and data access Risk Management, Margining and Post Trade Limits Comfort/cafe break [ ] 5. EEX Market supervision [ ] Introducing EEX market supervision Service overview / on hours and off hours Introducing order alert Trading errors: Mistrade range recall fee Maintenance in a 24/7 setup 6. AOB [ ]

32 Agenda 24/7 trading Pre Launch Meeting September 16th Welcome and introduction [ ] Background / new balancing model Change in ownership General change overview per October New contract specification [ ] 24/7 trading Contract specifications Revised price determination process New Trayport screen 3. Cut over by October 1st [ ] Ambition to avoid position transfer limit operation risks Changes to trading calendar The transition from Nord Pool Spot to ECC Lunch break [ ] 4. New clearing partner ECC [ ] Introducing ECC incl. ECC benefits Services at a glance The Member area: Reporting and data access Risk Management, Margining and Post Trade Limits Comfort/cafe break [ ] 5. EEX Market supervision [ ] Introducing EEX market supervision Service overview / on hours and off hours Introducing order alert Trading errors: Mistrade range recall fee Maintenance in a 24/7 setup 6. AOB [ ]

33 Agenda 24/7 trading Pre Launch Meeting September 16th Welcome and introduction [ ] Background / new balancing model Change in ownership General change overview per October New contract specification [ ] 24/7 trading Contract specifications Revised price determination process New Trayport screen 3. Cut over by October 1st [ ] Ambition to avoid position transfer limit operation risks Changes to trading calendar The transition from Nord Pool Spot to ECC Lunch break [ ] 4. New clearing partner ECC [ ] Introducing ECC incl. ECC benefits Services at a glance The Member area: Reporting and data access Risk Management, Margining and Post Trade Limits Comfort/cafe break [ ] 5. EEX Market supervision [ ] Introducing EEX market supervision Service overview / on hours and off hours Introducing order alert Trading errors: Mistrade range recall fee Maintenance in a 24/7 setup 6. AOB [ ]

34 Agenda 24/7 trading Pre Launch Meeting September 16th Welcome and introduction [ ] Background / new balancing model Change in ownership General change overview per October New contract specification [ ] 24/7 trading Contract specifications Revised price determination process New Trayport screen 3. Cut over by October 1st [ ] Ambition to avoid position transfer limit operation risks Changes to trading calendar The transition from Nord Pool Spot to ECC Lunch break [ ] 4. New clearing partner ECC [ ] Introducing ECC incl. ECC benefits Services at a glance The Member area: Reporting and data access Risk Management, Margining and Post Trade Limits Comfort/cafe break [ ] 5. EEX Market supervision [ ] Introducing EEX market supervision Service overview / on hours and off hours Introducing order alert Trading errors: Mistrade range recall fee Maintenance in a 24/7 setup 6. AOB [ ]

35 Any other business Further inputs, comments, suggestions, reflections?

36 Any other business Phone: Phone (clearing): Phone (Member readiness): Phone (24/7 gas hotline): Phone (office hours):