A PLATFORM TO FOSTER LIQUIDITY IN THE GAS CAPACITY MARKET

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A PLATFORM TO FOSTER LIQUIDITY IN THE GAS CAPACITY MARKET

Thierry Deschuyteneer

Fluxys (as platform operator)

GRI NW – SG meetingStockholm, 26 November 2009

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capsquare today : 1 platform for 2 TSOs

Joint initiative : GRTgaz and Fluxys aimed at developing a capacity trading platform enabling

• Multi-TSO running

• Separate or bundled products trading

• B2B integration» Smoothly integrated with TSO systems

» Parallel gas and capacity trading

Launched in January 2009

Today situation : One single platform for two markets• Single platform operator

• Single membership agreement with platform operator

• Single tariff structure

• Similar durations offered

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Services offered

A tool compatible with the commodity market• Explicit definition of trading partners

• Anonymous pre-trade transaction process

A proven technology• Based on the well-known Trayport GlobalVision Technology

• Standard capsquare interface or integration in RORC trading software

• No need for buying Trayport software separately

Swift trading of short-term capacity• Focus on short term durations

• Short lead times supported by B2B integration features

Transparency on multilateral transactions• capsquare provides an (anonymous) overall view of multi-lateral

transactions

Trading time

• depending on product, down to day-ahead at 6 pm

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Products : Instruments and segments

Instruments (= IPs)• Can be defined by each participating TSO

for its market

• Possibility to define cross-border instruments

Segments (= Duration)• Can be defined by each participating TSO

for its market

• Currently focus on short term opportunities

» D+1, D+2, D+3, WE, WDNW, Month

» GRTgaz : also Year

» Not specifically related to the primary product duration

Bundled products are supported• Single transaction and single

confirmation to the trader by capsquare

• Individual underlying legs are covered by each TSO

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capsquare today : Trading activity

0

500

1000

1500

2000

2500

WE

WDNW

Month

Daily

GWh/d Capacity exchanged by segments

0

5

10

15

20

25

30

35

40

45

WE

WDNW

Month

Daily

Transactions by segments

Monthly trades concentrate93% of volumes

Transactions by segments:

• month 53%

• day 18%

• week-end 15%

• WDNW 14%

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Way forward

capsquare aims to meet market's needs

• multi-TSOs from several countries

• possibility to introduce bundled / combined products

capsquare is built on an industry standard IT platform

• can be adjusted to market's needs

capsquare is looking for market feedback

capsquare is willing to improve the platform to foster the secondary capacity market

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Thank you for your attention