Dear trading participants,
We would like to inform you about upcoming changes to the financial pre-trading limit in EEX natural gas spot markets.
At the request of ECC, EEX will change the exposure calculation for financial pre-trading limits in EEX gas spot markets. The limit logic will enhance precision by factoring in the payment date for netting financial exposure of buy orders/transactions and sell transactions. The change will be activated in the trading system on 14 May 2025. We would like to draw your attention to this change and advise you to evaluate the potential impacts of this more accurate limit logic on your cash limit exposures.
New Exposure Netting Logic for EEX Gas Spot Pre-Trading Limit
EEX has established financial pre-trading limits within the trading system for natural gas continuous trading. The cash limit represents the maximum payment amount resulting from transactions between two ECC booking cuts (16:00 CET on ECC Business Days). Clearing Members can set the trading limit for their own activities or, with agreement, for the trading activities of connected Non-Clearing Members.
Starting on 14 May 2025, the trading system will consider the payment date for transactions and buy orders. Netting will only be enabled for exposures that share the same payment date.
| Current Limit Exposure Netting Logic | Limit Exposure Netting Logic as per 14 May 2025 |
|---|---|
| Any buy order/trade reduces the available trading limit (no change). Any sell trade is netted with buy exposures at any future payment date (provided it does not exceed the Initial Limit). | Any buy order/trade reduces the available trading limit (no change). Any sell trade is netted only with buy exposures that have the same payment date (provided it does not exceed the Initial Limit). |
An example can be found on page 3 of this Customer Information.
For further details on the trading limit, please refer to ECC’s Risk Management Services Manual chapter 3.6 EEX Natural Gas Continuous Trading – Cash Limit.
This change will be particularly relevant before weekends and public holidays, when delivery days with two or more weekdays ahead are available for trading. For within-day and day-ahead trading, the logic will yield similar results.
Amendment of EEX Trading Conditions
The change will be accompanied by an amendment to § 32 of the EEX Trading Conditions. The amendment will specify that the calculation of the trading limit exposure will be done in accordance with the stipulations in ECC’s Risk Management Services Manual published on ECC’s website.
Any future changes to the trading limit impacting customers will of course be published to our trading participants with sufficient lead time.
Action Required for Trading Participants
The proposed change introduces a more precise exposure calculation in the risk management system. Trading Participants with active cash limits should assess the impact of this change and agree on new limits with their Clearing Member, if necessary. Your Key Account Manager is available to assist you.
If you have any questions, please feel free to reach out to us.
Yours sincerely,
EEX Gas Market Operations
T +33 173 03 96 24
gas@powernext.com