Daily contract will be for one day’s delivery period. Member can trade up to individual “N” number of days where N is the individual one-day contracts. Contracts will typically start from delivery starting from T+4 day where T is the trade day and 4 is the delivery day. Daily contracts are available for trading up to a period specified by IGX for physical delivery of gas for defined days. The operations are carried out in accordance with Market Rules and IGX holds the right to modify parameters as specified by it from time to time.
Trading of contracts for delivery on defined Gas Day
Continuous Trading Process
Offers both delivered and ex-hub transactions on IGX.
Risk management through the requisite Margin, including any additional margin as specified for the respective trading segment or the type of contracts in the Market Rules.
- Participants enter bids for sale or purchase of gas for delivery depending on its contract specification.
- Bidding session: 1000 Hrs. – 1400 Hrs.
- The bids entered are stored in the central order book. The bids entered during this phase can be revised or cancelled till
- either trade is not executed or
- end of bid call period i.e.14:00 hrs. of trading day.
- During market hours, each incoming bid is immediately checked and matched if possible, according to price and time priority.
- Continuous trading facilitates trading during regular trading hours and hence has an advantage of immediate trades.
Pipeline Capacity Availability and Funds Availability
- MCP and MCV are used to calculate the obligation of the selected participants.
- Funds availability in the settlement accounts of the participants is verified based on the obligation.
- In case of insufficient funds, the trades of such a participant are deleted.
- Required pipeline capacity is sent to pipeline operators (Transporters) for scrutiny and allocation is requisitioned based on availability.
- Confirmation of capacity booking from pipeline operators received to buyer in Ex-Hub and IGX in Delivered transactions.
- Obligation is sent to the Clearing Banks for Pay in from buying Members and the Bank is asked to confirm the same.
- Daily Nomination are sent to pipeline operator from buyer in Ex-Hub and IGX in Delivered transactions.
Scheduling and Allocation
- Schedule will be sent by pipeline operators to Buyer/IGX. Also based on allocation quantity the pay-out will be released to seller.