Day-Ahead-Market (DAM) is a market for physical delivery of gas on the next gas day (D) starting from 0600 hours of gas day (D) to 0600 hours of the day after (D+1). The price and quantum of gas to be traded are determined through double-sided closed auction.
The operations are carried out in accordance with the Market Rules and IGX holds the right to modify parameters as specified by it from time to time if needed.
Trading of contracts from 10:00 Hrs on D-1 to 12:00 Hrs for delivery on next gas day, D+1 (06:00 Hrs (D) to 06:00 Hrs on (D+1).
Double-sided closed auction bidding 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. – 1200 Hrs.
- The bids entered are stored in the central order book. The bids entered during this phase can be revised or cancelled till end of bid call period i.e.12:00 hrs. of trading day.
- At the end of the bidding session, bids for each buy and sell order are matched using the price calculation algorithm.
- All purchase bids and sale offers are aggregated in the unconstrained scenario. The aggregate supply and demand curves are drawn on Price-Quantity axes. The intersection point of the two curves gives the market clearing price (MCP) and market clearing volume (MCV) corresponding to price and quantity of the intersection point.
- MCP and MCV are determined for each contract as a function of demand and supply which is common for the selected buyers and sellers.
- Selected members are intimated about their partially or fully executed bids and other trade related information.
Pipeline Capacity Availability and Funds Availability
- Preliminary MCP and MCV are used to calculate the provisional obligation of the selected participants and the provisional gas flow.
- Funds availability in the settlement accounts of the participants is verified based on the provisional obligation.
- In case of insufficient funds, the bids entered by such a participant are deleted.
- Required pipeline capacity and provisional gas flow is sent to pipeline operators (Transporters) for scrutiny and allocation is requisitioned based on availability.
- Based on the confirmation from pipeline operators, IGX calculates the final MCP and MCV.
- All selected Members will be informed about their obligations. Obligations are sent to the Clearing Banks for collection of Margins/Pay in from buying Members and the Bank is asked to confirm the same. Similarly, post-despatch of delivery, Pay-out will be released to the seller Members.
- Results for confirmation and application for scheduling of Collective Transactions are sent to the buyer and pipeline operator.
- The final confirmation through schedule will be sent by pipeline operators to IGX and also informed to the respective Members.