Market Dynamics Report

NOVEMBER 13 2014

October 2014

CME achieves record market share in Euro Coal, brokers regain share in largest market, volumes mixed.

This month sees a steadying of volumes and market dynamics across most Euro Commodity markets, as we settle into the new gas year and the new winter season. Volumes were mixed for the month, with the largest month on month change being a drop of 11% in UK Power, while UK Gas and Euro Power recorded increases of 7%. Euro Gas recorded a drop of 5% in traded volumes, while Emissions were up 3% and Coal up just 1% for the month.

UK Gas recorded a significant shift back to the brokers – broker bilateral market share increased 6% to 53% during October. This gain was mainly at the expense of exchange executions, which dropped from 46% last month to 41% this month. Euro Gas on the other hand saw a drop in broker bilateral market share of 2% to 85% of the market, as the cleared market gained to 15%. The TTF market contributed the most to this change at the Euro Gas grouping level, with broker bilateral share dropping to 81% in October, down 4% vs. September 2014. TTF dropped back to 72% of the NBP market this month, as TTF volumes declined 8% this month relative to NBP's 7% growth. What's driving this shift in fortunes for TTF relative to NBP?

CME achieved a new record cleared market share in European Coal in October – breaking through to 85% of the cleared market, at the expense of ICE. CME held 82% of the API2 cleared market, up 3% vs. September 2014, and 96% of the API4 cleared market, up 5% vs. September 2014. Volumes in coal have been mixed, with API2 showing a drop of 12% YTD 2014 vs. YTD 2013, and API4 showing a 2% drop over the same period.

Downloadable Content

October 2014 Monthly Dynamics Report (802KB)

Downloadable Content

October 2014 Monthly Dynamics Report