PEGAS Gas Trading Update Attila Török, Tobias Lucht Leipzig, 28 June 2018
EEX Group Markets Power Global Commodities Freight, Oil, Metals, Biomass - Woodpellets Natural Gas Agricultural Markets Potatoes, Dairy Products Environmental Markets Emission Allowances, Registry Services Guarantees of Origin & C2E 2
Agenda 1/ Facts & Figures 2/ Spot & Derivatives Updates 3/ Project Pipeline 3
2017 Euro Wholesale Developments 2.675,8 TWh (+0,4%) 39.539,4 TWh (-4,0 %) 4
PEGAS Trading Platform 2017 5
Spot & Futures Details Spot Leading European platform TSOs + Storage operator WithinDay increase (20% vs 50% DA) Market shares ranging 30-80% TTF growing the most 826 TWh Futures Monthly +/-80 TWh on screen Germany & France losing attention, others grow TTF dominance but still lacking market share (5%) 1,152 TWh 6
Derivatives Key Drivers T7 migration Link software, mapping, trader habits Financial industry, more maturities, options, power link Regulation EEX one-stop-shop EMIR, REMIT, MiFID II/ MiFIR reporting OTF order books Attract & incentivize members Incentive schemes, Market Making, Location spreads OTC Registration STP offering Options launch 7
OTC Registration 2016+17, All hubs 2018: TTF, GPL, PSV prominent Jun 2018: almost 10% OTC registered 8
PEGAS Options offering PEGAS TTF Gas Options Launch Date March, 13 th 2018 Trade Registration Cheaper than ICE Options contracts offered Via OTC registration only (esp. STP) Fees 0.002 each, trading + clearing exercise for free, Delta hedge for free - The next 6 month - The next 5 Quarters - The next 4 Seasons - The next 2 Calendars Tradable Option Series / Strike prices Awareness! Target members Transactions on Quarter, Season and Calendar Option Contracts will be stripped into consecutive individual Month Option Contracts for clearing. +/-20 strike prices above & below underlying price (0.5 interval) Brokers push for ECC clearing via STP, relevant members informed Group of c20 companies active, 10 PEGAS ready 9
Volumes in TWh Number of active futures member PEGAS Members support TTF Futures Member activity inside futures market PEGAS @ TTF 1.200 120 PEGAS trading volume @ TTF 1.000 Number of active PEGAS member @ TTF 80 86 80 100 800 80 62 600 60 400 34 40 20 200 20 0 0 0 0 10
PEGAS Spreads Distribution (2018) TTF NCG GPL PEG Nord GPL PSV PSV CEGH ETF 11
Spot Strategy Attract new members Full product range 24/7 coverage Location spreads Excellence in Physical Settlement Secure ECC processing Implement TSO needs Balancing products 12
Local TSOs Market Share on Within-Day (2018) NCG GPL PEG Nord TRS PEG Nord TRS ZTP ETF 13
Volumes in TWh Number of active spot member PEGAS Members support TTF Spot Member activity inside spot market PEGAS @ TTF 300 120 PEGAS trading volume @ TTF 250 Number of active PEGAS member @ TTF 86 95 98 100 200 76 80 60 150 45 60 100 25 29 40 50 20 0 0 14
Volumes in TWh PEGAS market share in % Exchange traded TTF spot volumes Competition between gas exchanges inside spot market TTF 300 250 200 ICE Endex @ TTF PEGAS @ TTF PEGAS share @ TTF 75% 83% 96% 98% 99% 99% 100% 80% 60% 150 100 44% 40% 50 26% 20% 0 0% 0% Balancing in TTF market area : Dutch TSO Gasunie Transport Services still use ICE Endex 15
Hub Market Updates 1/2 Dutch TSO starts using PEGAS GTS for off-line allocations + linepack flexibility services NGP Neutral Gas Price publication (1 st July 2018) Zone mergers Germany, April 2022 latest UPDATE 28/6/18: Merger planned for 1st October 2021 France, 1 st November 2018 Two French Zones will merge into TRF Trading Region France ( PEG ) PEG Nord Futures recycle into PEG one month before merger, TRS delisting No position transfer required, ECC no PEG shipper code change Belgian market growth Reaching significant levels on spot (40 TWh, +60% Market share) 16
Hub Market Updates 2/2 Italy growing Members: 51 registered, 27 active, 60 TWh since launch Market makers, including PSV/TTF PSV Fin futures delisting Nordic news DK/Sweden joint balancing zone: current market consultation, go live 1 st April 2019 Baltic Pipe project: investment decision end of 2018, project October 2019, operational October 2022 North Sea Tyra platform maintenance rebuilding October 2019 - October 2022, reduced production will increase DK dependency on GER supply price impact NBP rising Spot receiving attention by traders, 30 active, number of trades picking up CEGH/ Czech Hubs 17
PEGAS CEGH Market Developments AT & CZ Attila Török, Leipzig, 28/06/2016
TWh TWh CEGH Volume Development 2017 CEGH VTP: 1-12 / 2017: 621.93 TWh (y-t-y: +16.7%) PEGAS CEGH Gas Market*: 1-12 / 2017: 88.89 TWh (y-t-y: +173.73%) CEGH VTP Market PEGAS CEGH Market AT 700 100 600 500 400 80 60 300 200 100 533 622 40 20 32 89 0 Jan - Dec 2016 Jan - Dec 2017 0 Jan - Dec 2016 Jan - Dec 2017 *up to Nov 2016: CEGH Gas Exchange of Wiener Boerse 19
TWH TWh CEGH Volume Development CEGH VTP: 1-5 / 2018: 277.88 TWh (y-t-y: +3.4%) PEGAS CEGH Gas Market: 1-5 / 2018: 52.09 TWh (y-t-y: +73.23%) CEGH VTP Market PEGAS CEGH Market AT 300 60 250 200 269 278 50 40 52 150 30 100 20 30 50 10 0 Jan - May 2017 Jan - May 2018 0 Jan - May 2017 Jan - May 2018 20
PEGAS and CEGH Locational Spread products TTF GASPOOL NCG CZ VTP PSV 21
PEGAS CEGH Czech Market: Launch: Futures Market: 9 December 2013 Spot Market: 4 May 2015 Members: 26 members registered Traded Volume: 01 12/2016: 3.113 TWh 01 12/2017: 4.341TWh (+39%) 01 05/2017: 1.206 TWh 01 05/2018: 2.522 TWh (+109%) 22
TWh PEGAS CEGH Czech Market 2018: Spot and Future Increase on YtY basis: +109% 3 Total Volume Development 2.5 2 Futures +170 % 1.2 1 Spot +75 % 0 Jan - May 2017 Jan - May 2018 Spot Market Futures Market 23
TWh PEGAS CEGH Austrian Gas Market *: Yearly Trading Volume since 2009 100 90 80 70 60 50 40 30 20 10 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Futures Market 0 52.080 525.150 296.910 301.170 2.317.19 3.510.90 7.761.58 20.466.8 16.275.0 Spot Market 8.640 1.061.16 2.016.29 2.761.02 12.917.7 18.944.2 22.964.4 24.715.4 68.432.9 35.822.7 24
TWh PEGAS CEGH Austria: Spot and Future Growth 1-5 2017 vs 2018 40 35 Spot + 50% 30 25 20 15 Futures + 165% 10 5 0 Spot Market 01-05.2017 01-05.2018 Futures Market 25
TWh Monthly Trading Volume since Dec 2009 12 11 Day ahead & Wkend Within day Futures Market All-time high 10 9 8 7 6 5 4 3 New Austrian Balancing System Launch additional SM contracts Launch additional FM contracts Launch PEGAS CEGH Markets 2 1 0 Launch FM Implementation Trayport GV ETS 26
01.2013 04.2013 07.2013 10.2013 01.2014 04.2014 07.2014 10.2014 01.2015 04.2015 07.2015 10.2015 01.2016 04.2016 07.2016 10.2016 01.2017 04.2017 07.2017 10.2017 01.2018 04.2018 NUMBER OF MEMBERS Development of the Members since 2013 Spot Market Futures Market Total Spot active Spot passive 100 80 60 40 20 0 27
17 th CEGH Feedback Workshop Save the Date: 17th CEGH Feedback Workshop! 28 November 2018, Porgy & Bess Jazzclub, Vienna 28
PEGAS Roadmap Recent Upcoming Spot Congestion Management Products Balancing robots New indices Spot French Zone Merger Prompt TAS Trading Limits Futures OTC STP T7 trading system Options MIFID II Compliance Futures D-2 close out LNG Strip clearing T7 enhancements New Markets Italy (2015) Austria (2016) Denmark (2016) Czech Republic (2017) New Markets Spain (~Q4 2018) Several others in monitoring 29
PEGAS Initiatives LNG Products LNG cash settled futures in Q4 2018 Basis: average of the daily Platt s Japan Korea Marker US$ denominated STP registration only Q + S + C cleared in monthly strips Membership package? Settlement procedure? Trading calendar? Fee offering? Indexation? 30
PEGAS Initiatives PVB Spanish Market 24/7 Spot markets Within-Day Day-Ahead Weekend Saturday Sunday Individual Days Futures (Regulated Markets)* Month +4 Quarters +4 Seasons +3 Calendars +2 *precise product offerings dependent on market area, same maturities are listed on PEGAS OTF market segment Target Go-live: Q1 2019* PVB ES Time Spreads PVB/TTF + PVB/PEG OTC (STP) *Pending regulatory and technical approval 31
Thank you