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Central European Gas Hub ERGEG 30th, 2009. How to serve commodity trading. Trading along the Amber Road. Trading along the Silk Road. First documented Trading took place in Africa. Trading along the Hanse Route. 2005 AD CEGH Gas Hub. DEVELOPMENT OF COMMODITY HUBS. 2003 AD TTF Gas Hub.

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Central European Gas Hub

ERGEG 30th, 2009


How to serve commodity trading
How to serve commodity trading

Trading along the Amber Road

Trading along the Silk Road

First documented Trading took place in Africa

Trading along the Hanse Route

2005 AD CEGH Gas Hub

DEVELOPMENT OF COMMODITY HUBS

2003 AD TTF Gas Hub

1999 AD APX Gas Hub

1994 AD NBP Gas Hub

1792 AD Exchange in New York

PHYSICAL & VIRTUAL TRADING

1771 AD Exchange in Vienna

1720 AD First Crash

1602 AD Exchange in Amsterdam & First Share

1554 AD Exchange in London

1540 AD Exchange in Nürnberg

PHYSICAL TRADING

1409 AD First Exchange in Brugge

1200 AD Trading along the Hanse Route

100 AD Trading along the Silk Road

3000 BC Trading along the Amber Road

140000 BC First documented Trading

140 000 BC

2000 AD

1200 AD

1700 AD

100 AD

3000 BC



Cegh one additional trading point
CEGH: one additional trading point


Hub landscape in europe
HUB landscape in Europe

Zeebrugge

DONG

NBP

GUD

TTF

EGT

CEGH

PEG

PSV

CDG

Future potential Hubs


PricewaterhouseCoopers: ordered by ERGEG in the course of the SEE Region Initiative

Almost 100% of respondents are

currently trading at the

CEGH Hub in Baumgarten:

When it comes to volume of trade, 57% of traders said that the CEGH has the best chance of becoming the most important hub in CEE/SEE and would be best suited as regional trading platform.

Furthermore 75% of respondents would like to have a regional price index where one would be technically and economically viable.


Development of otc trade
Development of OTC - Trade the SEE Region Initiative

  • Increasing trading activities:

  • Increasing churn rate

  • Increasing number of customers

  • Increasing number of nominations


Basic nominations per gas day
Basic nominations per gas day the SEE Region Initiative

Appr. 2000 nominations per day


Herfindahl index
Herfindahl Index the SEE Region Initiative


Broker based trading at CEGH the SEE Region Initiative

Dimensions of bubbles are indicating volume of trade



Otc market making baumgarten
OTC Market Making - Baumgarten environment

  • Products:

    • Day Ahead

    • BOM

    • 2-3 Front months

    • 2 Quarters

    • 2 Seasons

    • 1 Yearly contract

  • Quantities:

    • 10 / 30 MWh/h

  • Bid/Ask Spread:

    • Maximum: 1,0 EUR / MWh (1,5 for seasons/ yearly contracts)


  • Development from the physical to the financial services
    Development environmentfrom the physical to thefinancial services

    OTC Clearing

    Futures

    Spot

    Physical Balancing Merit order list

    Backup / back down service

    Services

    CEGH Multi Trading (CMT) / Dispatching services/Allocation/Invoicing

    CEGH Multi Trading (CMT) Dispatching

    Physical balancing via online bulletin board

    Online bulletin board

    No notice storage service

    Wheeling service

    Title tracking service

    Web based online gas auctioning

    2009

    2008

    2007

    2006


    Exchange project cegh wbag
    Exchange project: CEGH - WBAG environment

    technical

    legal

    AG foundation10/ 2008

    Evaluation of IT – Systems 2008

    Shareholder agreement11/ 2008

    Selection IT – Systems 11/ 2008

    Contractual setup11/ 2008

    IT implementation

    Approval FMA (basic concept)11/ 2008

    IT interfaces to WBAG

    Pre notification submitted 12/ 2008

    IT integration customer

    Operation agreements

    Customer agreements

    Interface implementation

    OTC dispatching

    Simulation start

    Go life 2009


    Physical Trade - OTC environment

    t

    Remote

    Member

    Clearing Agent

    (Bank)

    CCP.

    A

    Central

    General Clearing

    t

    Member

    (GCM)

    Counterparty

    Direct

    Clearing

    Member

    (DCM)

    Austria

    Non Clearing

    Member

    (NCM)

    Non Clearing

    Member

    (NCM)

    Non Clearing

    Member

    (NCM)

    Non Clearing

    Member

    (NCM)

    OeKB

    Settlement

    bank

    OTC TRADING

    EXCHANGE TRADING

    Day of Delivery -1

    Supply & Demand

    Exchange Trader 1

    Exchange Trader 2

    CLEARING & SETTLEMENT

    (RISK MANAGEMENT)


    GasExchange environment


    Physical Transfer - OTC environment

    t

    Remote

    Member

    Clearing Agent

    (Bank)

    CCP.

    A

    Central

    General Clearing

    Member

    (GCM)

    Counterparty

    Direct

    Clearing

    Member

    (DCM)

    Austria

    Non Clearing

    Member

    (NCM)

    Non Clearing

    Member

    (NCM)

    Non Clearing

    Member

    (NCM)

    Non Clearing

    Member

    (NCM)

    OeKB

    Settlement

    bank

    OTC Transfers

    EXCHANGE TRADING

    Day of Delivery -1

    Supply & Demand

    Exchange Trader 1

    Exchange Trader 2

    CLEARING & SETTLEMENT

    (RISK MANAGEMENT)

    t


    Contractual frameworks environment

    Ministry of finance

    WAG 2007: Wertpapier Aufsichtsgesetz

    Börsegesetz (exchange law)

    Austrian Financial Markets Supervisory Agency

    CEBS Committee of European Banking Supervisors

    MiFID Market Infinancial Instrument Directive

    Derivative market

    Department of commerce

    Spot market

    Energie – Control GmbH

    OTC market

    Interconnection Agreement (OBA)


    Three pillars for liquidity
    Three pillars for liquidity environment

    Sufficient primary capacities

    OTC

    Exchange

    Flexible services

    Use it or lose it

    interruptible

    Trading

    platform

    Capacity utilization

    Storage

    Harmonized Environment


    Market maker in OTC trade in cooperation with ICAP environment

    Bricks for Hub construction

    Standard-isation

    Trans-parency

    Firmness

    Liquidity

    Partnership with GAZPROM, VSE, CENTREX prenotified to DG - Comp

    IT in place

    legal

    Cooperation with HEREN & EFET

    Gas exchange

    Back up/ down in cooperation with EFET

    Interconnection agreement / OBA



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