Market Dynamics Report

APRIL 14 2015

March 2015

Euro Gas Growth continues; Euro Power exchange competition; and NBP heads back to the brokers
March saw the continued growth of the Euro Gas commodity grouping, with volumes up 34% YTD 2015 vs. YTD 2014. The Euro Gas commodity grouping includes the TTF, NCG, Gaspool, PEG and PSV commodities. All included commodities except Gaspool have seen YTD 2015 vs. YTD 2014 volume growth, as shown by the table below. Four out of six of the commodities recorded their highest monthly volume in March, while NCG and Gaspool recorded their highest monthly volume in February and January respectively.

This continued growth in Euro Gas commodities now renders it the largest commodity grouping in the Euro Commodity markets, with 38% of total monthly contracts traded YTD 2015. NBP, the largest commodity YTD 2014, now has 32%, down 1% vs. YTD 2014. The Dutch hub TTF is nipping at the heels of NBP for single largest commodity and significant gas hub, at 82% of NBP volumes in March 2015, and 79% YTD 2015 (up 18% vs. YTD 2014).

Alongside this growth in volume we are seeing an increase in the cleared market and exchanges competing for volume. The cleared market has grown to 16% of total volumes YTD 2015, double the 8% YTD 2014. CME and PEGAS have both been active in launching new contracts this year, with CME adding TTF, NCG, Gaspool and PSV contracts during January, and PEGAS launching PSV futures this month.

Another area of intense exchange competition is Euro Power. EEX solidified their position in continental power contracts through 2014, increasing their offering with Italian Power futures and Spanish Power trade registration. ICE have launched both German and Italian Power futures via the ICE Endex platform but are yet to see volume. Nasdaq continues to compete in German Power, with 8% of the cleared market YTD 2015, up 5% vs. YTD 2014. While the cleared market has increased, the brokers have not suffered, with YTD 2015 volumes of 1,580 TWh are still up vs. YTD 2014's 1,498 TWh.

We saw the NBP market shift back to the brokers during March, with broker bilateral market share growing 4% to 45%, at the expense of exchange executions. NBP saw another high volume month, up 3% vs. Feb-15, resulting in a new second highest monthly volume for NBP since our records began. YTD volumes are up 10% vs. YTD 2014. CME launched NBP futures trading in January, while PEGAS additionally launched NBP spot contract trading this month, with 7 GWh traded.

Downloadable Content

March 2015 commodities report (1MB)

Downloadable Content

March 2015 commodities report