ICE UK Natural Gas

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The ICE UK Natural Gas Futures contract, first listed in January of 1997, is used primarily to manage price risk in the underlying physical natural gas market, as an investment vehicle, to effect physical delivery into the UK gas grid, and to enable users to separate/reference the price element within a long-term physical gas contract.

The contract results in physical delivery only if position(s) are not closed out prior to expiration. Physical delivery takes place within the UK natural gas grid at the National Balancing Point (NBP). Delivery must be made equally throughout the delivery period and equivalent to the number of lots open at the time of expiration.

Uses

Natural gas is a fossil fuel source of energy. Due to economical and ecological advantages that it presents as well as its safety qualities (e.g. reduced flammable range), natural gas is an increasingly attractive source of energy in many countries.[1]

Data Quotes

ICE offers data quotes on a subscription basis.[2]


UK Natural Gas futures
Exchange ICE
Settlement Cash settled
Contract Size One lot equals 1,000 therms of natural gas per day
Pricing Unit Need pricing unit!
Tick Value Need tick value!
Contract Months Season contracts are strips of six individual and consecutive contract months. Season contracts are always an (April-September) strip or (October–March) strip. Nine season contracts are listed. Quarter contracts are strips of three individual and consecutive contract months. Quarter contracts always comprise a strip of (Jan-Feb-Mar) or (Apr-May-Jun) or (Jul-Aug-Sep) or (Oct-Nov-Dec). Eleven-12 quarter contracts are listed. Month contracts are strips made up of individual and consecutive calendar days. A monthly contract is 28, 29, 30 or 31 individual day contracts, determined by the precise number of calendar days in the month. Month contracts are listed 10, 11 or 12 consecutive months into the future. Balance of the Month (BOM) contracts comprise a string of individual day contracts with the precise number determined by the number of days still outstanding in the current month. The BOM contract therefore reduces in size on a daily basis, generating a daily contract representing the delivery obligation of that day. Only one BOM contract is listed for any unexpired days remaining in the current month. Day contracts are listed from day ahead (D-1) to seven days ahead (D-7).
Last Trading Day Need LTD rules!
Note: This contract is electronic ONLY -- no open outcry
  No Open Outcry Electronic
Trading Hours N/A Open: 07:00 London (local time) Close: 17:00 (Daily contracts 16:00) - London (local time)
Ticker Symbol N/A GWD
Price Limits N/A There are no price limits.

Notes

Contracts are traded through the ICE Platform, by the Exchange of Futures for Physicals (EFPs), the Exchange of Futures for Swaps or Block Trades.

References

  1. Characteristics. UNCTAD.org.
  2. The most valuable commodity is information. ICE.