Secondary Capacity Trading Platform

Service description

The ability to obtain gas capacity rights is an essential element for operations in gas markets. Having well functioning primary capacity allocation mechanisms in place shippers are becoming more and more interested in having a functioning secondary market to ensure the efficient allocation of capacity. The secondary market 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 minimized and that the level of capacity overbook or overrun is minimized. GET Baltic, developing tailor made solutions for natural gas trading, as of 1 December 2020 has launched dedicated platform for trading gas capacity on the secondary market in Finland – Secondary Capacity Trading Platform (SCTP).

Trading capacity via SCTP enables direct trading with other shippers without lengthy bilateral negotiations 24/7, creates opportunities to trade firm gas capacity on entry and exit points of Finnish transmission system, ensures FCFS trading as well as assures anonymous trading procedure (counterparties shall be revealed to each other in order to organize settlement between each other only after trade confirmation).

By organizing physically settled secondary gas capacity trading GET Baltic takes into account the requirements set out by the Finnish transmission system operator as well as rules and laws applicable in Finland and European Union.

Shippers interested in offering or requesting capacity on the organized secondary market shall be entitled to become the users of the Secondary Capacity Trading Platform (SCTP).

Key capacity trading principles

SCTP users shall have the possibility to transfer capacity anonymously 24/7 by means of Transfer of Use. Which means that only rights of capacity use shall be transferred between the shippers, leaving obligations towards TSO stay with selling shipper. Anonymity shall be ensured until the conclusion of the trade, afterwards parties will be revealed to each other in order to organize settlement. Trading on the secondary market shall be organized applying FCFS trading procedure, meaning that the price of the proposal to buy or sell capacity shall be considered as the fixed price the buyer/seller is willing to buy/sell for.

1. A Shipper creates a Trade proposal.

2. The Trade proposal is published on the Platform.

3. Shipper Counterparty places a Response.

4. A Response is a subject to an acceptance procedure (either manually by the Initiating Shipper or automatically by the Platform).

5. Once Trade proposal has been matched with a Response a Trade is created.

6. Once the Trade is created capacity transfer request is sent to TSO in order to validate a transaction.

7. Once TSO validates the Trade it becomes valid and legally binding.

Application for the Member status

A Request to grant the status of the Member of the SCTP to be submitted to GET Baltic together with the following documents:

The extract of the entity’s main data from the Trade Register (or corresponding foreign document if the enterprise is registered outside Finland) issued not earlier than 60 days before the date of submission of an application.
The copy of the valid Framework Agreement with the natural gas transmission system operator.

After receipt of indicated documents, GET Baltic shall assess the adequacy of the documents and prepare Membership Agreement for signing of.

Service fees

Annual membership fee	4 000 EUR/year
Floating trading fee	0.00002 EUR/kWh/h
API Service fee	1 000 EUR/year