BME Clearing, the Central Counterparty (CCP) operated by BME, informed that it will expand its current energy segment to incorporate gas derivatives as of the first quarter of 2018. The objective of these new contracts is to offer a service that meets the needs of clients, broaden the service range and foster the development of the Spanish gas market.
With a view to developing the gas market in the Iberian Peninsula the regulations affecting these products has been amended, more specifically since the Balancing Code came into effect on 1 October 2016.
It is expected that the Iberian gas futures market will continue to develop and that firms needing to hedge their counterparty risk will tap this market. Many of the current players active in the Iberian gas derivatives market and other interested parties have shown an interest in a Central Counterparty offering gas contracts, as this will help them manage their counterparty risk, aiding further development and growth of this market.
BME Clearing started its activities in the energy segment in March 2011, clearing power derivatives. Gas derivatives contracts will be included in this segment; therefore current members and participants in such segment will have access to register such products.
BME Clearing foresees to launch the following gas contracts:
- Futures, with delivery periods of weeks, months, quarters, seasons and calendars.
- Spot, daily contracts.
All contracts will be physically settled at the Spanish PVB (Punto Virtual de Balance), where changes in Natural Gas ownership will take place.