Yet another gas market switches to Euro

Budapest, 19 December 2019 - As of January, transactions will be cleared in Euro on the trading platform of FGSZ Natural Gas Transmission Ltd. (hereinafter: FGSZ) also, similarly to clearing on other major gas markets. The switch is of technical nature, reported KELER CCP Ltd. (hereinafter: KELER CCP) as the entity clearing the transactions. KELER CCP provides clearing house and guarantee services and partly due to the increased revenues realized on the gas markets achieved considerable growth this year, and plans on continued expansion as stated in its strategy.

KELER CCP, the provider of clearing house and guarantee services, a member of the KELER Group owned by Magyar Nemzeti Bank (the central bank of Hungary), announced that trades will be cleared in Euro instead of HUF on the trading platform of FGSZ Natural Gas Transmission Ltd.

Daily clearing in Euro is on its way

The company advised that the differences calculated upon clearing after the so-called gas day, the trade day given, i.e. the gas day imbalance values, will also be stated in Euro. As of January, the settlement and risk management of transactions will also be carried out in Euro. At the same time, settlement cycle will change from monthly currently to daily. Despite the change, KELER CCP will state fees charged in Forint, related fee invoices will be issued and the invoiced amounts will be collected in Euro, in line with the settlement currency.

Károly Mátrai, KELER CCP Chief Executive Officer noted: “Other gas markets, such as CEEGEX and HUDEX already apply Euro-based invoicing, and the FGSZ platform changing to Euro simplifies gas market trading. This very momentous change is the prerequisite of consolidating the risk management and clearing of domestic gas markets in 2020.”

A further change on the domestic gas market is that as a result of the amendment of the act on gas supply (Get.) all traders intending to do business on the domestic gas platform will have to have a relationship with KELER CCP as of the start of 2020 as gas balancing clearing from 1 January can be performed with the involvement of KELER CCP only.