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Natural Gas Derivatives

On November 24th 2017 OMIClear, in coordination with OMIP – Pólo Português, S.G.M.R., S.A., launched the clearing and settlement service for Natural Gas Derivatives Contracts (MIFID financial instruments). With this service extension OMIClear intended to serve the existing demand for central clearing of natural gas future contracts with physical settlement at the Spanish virtual balancing point (PVB-ES).

Following an interconnection agreement with a new market - Mibgas Derivatives S.A. -, OMIClear launched on April 24th 2018 the clearing and settlement service on Natural Gas Derivatives Contracts to comprise the natural gas futures contracts traded in this organized market.  A few months later OMIClear also signed an interconnection agreement with Mibgas S.A. (an organized market designated by Spain’s Law 8/2015 of May 21st of Hydrocarbons Industry) to clear and settle the month ahead and balance of the month natural gas contracts traded in this market, starting on March 1st 2019.

As referred in the following summary table, the physical natural gas futures contracts in PVB-ES Spanish virtual balancing – the so called PVB-ES NG Physical Futures - are listed in the 3 markets (OMIP, Mibgas Derivatives and Mibgas) and share exactly the same underlying asset, contract specifications, margin model and settlement type in the delivery period (i.e. daily positions’ notification to Enagás GTS by OMIClear). The only difference has to do with the financial classification of the product under MIFID II, which is related to the market type: OMIP as a ‘regulated market’ according to this financial regulation, contrary to Mibgas Derivatives and Mibgas.

The classes of financial instruments covered by OMIClear's CCP authorisation are published in ESMA website: https://www.esma.europa.eu/sites/default/files/library/ccps_authorised_under_emir.pdf

In this context the Service on Natural Gas Derivatives Contracts provided by OMIClear currently comprises the following contracts and markets:

To see the detailed specifications of these contracts please download the General Contractual Terms.

The type of cash settlements and margins applicable to these derivatives contracts across their lifecycle (during Registration Period and Delivery Period) are summarized in the following table:

For further details on the margin model, please see Risk Management > Margining.