Fluxys, APX-ENDEX Ready to Launch New Exchange on Belgian Gas Market

Energy exchange APX-ENDEX and gas transmission system operator Fluxys Belgium will launch a new Belgian exchange trade market to boost liquidity and price transparency on the Belgian gas market.

The new market opens for trading on 27 September 2012. Trading members on the new APX Gas ZTP market will benefit from a one month fee holiday.

Variety of Within-Day and Day-Ahead instruments

The new APX Gas ZTP market is launched as part of the introduction by Fluxys Belgium on 1 October of a new entry/exit model making available on the new ZTP virtual trading point every cubic metre of gas entering the Belgian grid. The products for trading on the APX Gas ZTP market include a variety of Within-Day and Day-Ahead instruments which will be listed on Trayport’s GlobalVision ETS. Depending on the needs of market participants, a range of longer term contracts may be launched at a later stage. All contracts are priced in EUR/MWh and will be cleared by APX-ENDEX, which considerably reduces the counterparty risk of the exchange participants.

Improved liquidity

The aim of the cooperation between Fluxys Belgium and APX-ENDEX is to improve liquidity on the Belgian gas market by offering market parties an easy and straightforward platform to enhance their gas portfolio and balance their gas flows. Fluxys Belgium will buy and sell on the APX Gas ZTP market to ensure overall balancing of the Belgian grid.

Enhance price transparency

The APX Gas ZTP exchange traded market will also enhance the transparency of the Belgian market through the provision of market data and indices. Robust price indices are a prerequisite for the further development of market-based gas pricing as they can be used as a reference in the pricing of gas for supply to end consumers in Belgium.

Fee holiday

To incentivise trading, APX-ENDEX will offer zero transaction and clearing fees from go live on 27 September 2012. The fee waiver will be in place for the first month of operation of the APX Gas ZTP market. To date over 20 market participants have registered for the Gas ZTP market and based on healthy market interest, APX-ENDEX expects to welcome more new members by end of this year.

Walter Peeraer, CEO Fluxys Belgium: “1 October will see a profound change in how the Belgian gas market is operated. Grid users will have full flexibility in booking and using capacity in the Belgian grid and the new APX Gas ZTP exchange traded market will provide additional possibilities to offer competitive gas. Price transparency is another novelty: the exchange will feature a gas price index showing the value of non oil indexed gas in Belgium.”

Bert den Ouden, CEO APX-ENDEX: “We are delighted to be given the opportunity to continue and strengthen our cooperation with Fluxys Belgium. Their strong desire to implement market based solutions combined with our experience as a balancing market operator provides a solid basis for the successful start of the ZTP market”.

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LNG World News Staff, September 26, 2012