ASX is pleased to launch the Wallumbilla and New Zealand Natural Gas Futures contracts on 7 April 2015. The launch comes after AEMO established Australia's first voluntary gas supply hub in Wallumbilla, QLD. The Wallumbilla End of Day Benchmark Price will be used as the reference price for ASX's new gas futures contracts.
These new contracts are part of ASX’s expanding energy derivative business, which is designed to meet the risk management needs of Australian energy participants.
The ASX Natural Gas product suite includes:
1. Wallumbilla Natural Gas Calendar Quarter Futures (GK)
2. Wallumbilla Natural Gas Calendar Month Futures (GJ)
3. Victorian Natural Gas Calendar Quarter Futures (GX)
4. Victorian Natural Gas Calendar Strip Futures (GY)
The natural gas futures contracts are a standardised and centrally cleared financial contract structured as cash-settled contracts for difference (CFD) against a relevant natural gas reference price.
The natural gas futures contracts provides a robust mechanism for companies with interest in or exposure to the natural gas market to anonymously manage their gas price risk and counterparty credit risks.