- How do I commence trading ASX Victorian Wholesale Gas Futures?
- Why list Victorian Wholesale Gas Futures at ASX?
- Why the 6am Victorian wholesale gas market reference price?
- Are the contracts deliverable or cash settled?
- How is the market likely to evolve from here?
- What are ASX’s plans for introducing additional gas futures and options?
For information on how to access the ASX markets please contact an ASX 24 Full or Clearing Participant (PDF 140KB).
The introduction of ASX Victorian Wholesale Gas Futures will enable those firms with exposure to the Victorian wholesale gas market to better manage their forward price risks and counterparty exposures.
By virtue of its existing Australian electricity futures and options contracts, ASX infrastructure is uniquely placed to service new entrants and existing participants in the Victorian wholesale gas market.
The Victorian 6am wholesale gas price was selected as the reference point following extensive market consultation and an assessment of trading activity within the Victorian wholesale gas market.
For further information regarding the operation of the Victorian wholesale gas market please visit www.aemo.com.au.
ASX Victorian Wholesale Gas Futures contracts are cash settled using the arithmetic average of the beginning of day (6am) price for the Victorian wholesale gas market over the period of a calendar quarter.
Liquidity and open interest is likely to build over time as underlying gas markets are further developed on the East Coast of Australia. A diverse range of gas market participants and financial institutions have expressed their intention to trade ASX Victorian Wholesale Gas Futures.
As the Short-term Trading Market (STTM) is introduced in 2010 it is expected that sophisticated gas trading and hedging activity will be undertaken as market participants optimise their multi-fuel exposures and portfolio performance.
Given the likely demand for risk management products and related trading interest post the introduction of the STTM in 2010 the ASX will introduce additional natural gas futures and options products as required.