Public consultation on the Finnish gas market Regulation of Trading on the Secondary Capacity Trading Platform

Public consultation on the Finnish gas market Regulation of Trading on the Secondary Capacity Trading Platform

The ability to obtain gas capacity rights is one of the essential elements for operations in the gas markets. With a matured primary capacity allocation mechanism, being in place as market roles over to the higher level of development, shippers become more and more interested in having additional opportunities for capacity trading on the secondary market.

The secondary market for gas capacity trading plays a vital role in helping market participants manage and shape capacity needs to meet their business requirements. The efficient use of capacity ensures that costs are reduced and that the level of capacity hoarding is minimized.

GET Baltic, developing tailor made solutions for natural gas trading in the Baltic countries and Finland, as of 1 December 2020 will launch the dedicated platform for trading gas capacity on the secondary market in Finland. “It is expected that Secondary Capacity Trading Platform services which GET Baltic will introduce to the Finnish market shall create additional trading opportunities – adding up to well-functioning gas market. We believe that market participants involvement is a key to success, so today publishing document which will set the capacity trading rules on the platform we invite market participants to share their view, comments and opinions so we could agree on the regulation meeting the needs of the market”, says Ieva Ciganė, Head of Trading and Product Development at GET Baltic.

By organizing physically settled secondary gas capacity trading GET Baltic, will take into account the requirements set out by the Finnish transmission system operator Gasgrid Finland Oy. GET Baltic implementing key requirements on the Secondary Capacity Trading Platform shall:

• ensures trading possibilities 24/7 every day;
• creates opportunity to trade firm gas capacity on entry and exit points of Finnish transmission system;
• assures anonymous trading procedure (counterparties shall be revealed to each other in order to organize settlement between each other only after trade confirmation);
• creates possibility to trade by means of transfer of use;
• applies first come first served trading procedure.

Also, it is foreseen to offer additional functionalities such as API data exchange solution, which will allow to request data from the platform directly to IT systems of the shippers.

Detailed rules and principles of gas capacity trading on the platform of secondary transactions are set out on the Regulation of Trading on the Secondary Capacity Trading Platform. All Finnish gas market participants and other interested parties are welcome to provide comments and opinions on the published Regulation of Trading on the Secondary Capacity Trading Platform. Share your view and contribute to the improvement of the Regulation until 20 October 2020.

Please submit comments and opinions on the Regulation to GET Baltic by email [email protected] or [email protected].

Detailed timeline for becoming a member of the Secondary Capacity Trading Platform, as well as information on foreseen registration and training processes will follow in the upcoming weeks.

Document: Regulation of Trading on the Secondary Capacity Trading Platform.

Questions? Please contact:

Ieva Ciganė
Head of Trading and Product Development
[email protected]
Tel. +370 636 64354