ICE announces new milestones in TTF and JKM trading
Amid the liberalization of liquefied natural gas and the corresponding globalization of natural gas markets, Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced new milestones in the trading of the TTF natural gas and JKM LNG (Platts) contracts.
In September, TTF Futures and Options hit an all-time monthly volume record of more than two million lots (2,023,848), equivalent to 1,484 TWh. TTF Futures set a new daily volume record on September 10 of 193,695 lots, equivalent to 142.1 TWh. TTF is the most liquid European natural gas benchmark, followed by ICE’s UK Natural Gas Futures (NBP). Europe’s interconnected natural gas infrastructure allows it to absorb LNG arriving on the continent and has propelled the adoption of TTF Futures and Options as risk management tools for commercial traders to manage their exposure to global natural gas price volatility. TTF volume is up 97% year-over-year, versus 1,027,977 lots in September 2018.
In Asia, LNG liberalization - driven by the surging supply of destination-free LNG from the USA - has enabled the creation of Asia’s first natural gas benchmark in the Platts LNG Japan Korea Marker (JKM). ICE JKM LNG (Platts) Futures hit an all-time volume record in September of 55,838 lots, equivalent to approximately 180 cargoes, and hit an open interest record of 67,025 lots. ICE JKM LNG (Platts) volume is up 323% year-over-year, versus 13,199 lots in September 2018. Open interest in ICE JKM LNG (Platts) Futures and Options is up 228% at 70,166, versus 21,397 lots in September 2018.
“The globalization of natural gas is propelling the growth of the TTF and JKM contracts into robust and distinct global benchmarks,” said Gordon Bennett, Managing Director, Utility Markets at Intercontinental Exchange. “The momentum behind the ICE TTF contract is supported by Europe’s role as the global balancing market for LNG. This is creating a virtuous cycle of liquidity for TTF, attracting new participants and cementing its utility as a risk management tool for customers to hedge their natural gas price risk. As TTF becomes increasingly internationalized, it is evolving into a global benchmark of natural gas. At the same time, the record growth in the use of JKM Futures reflects the profound changes in the LNG industry, which is rapidly evolving and maturing,” Bennett added.
As home to the broadest range of natural gas benchmarks, ICE plays a leading role in providing access to price transparency and data to allow the market to navigate and manage risk from the globalization of natural gas and the energy transition occurring across the world. ICE’s global natural gas complex spans trading hubs from the US and Canada to Europe and Asia, underpinned by an offering of more than 600 financially and physically-delivered contracts.
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company formed in the year 2000 to modernize markets. ICE serves customers by operating the exchanges, clearing houses and information services they rely upon to invest, trade and manage risk across global financial and commodity markets. A leader in market data, ICE Data Services serves the information and connectivity needs across virtually all asset classes. As the parent company of the New York Stock Exchange, the company is the premier venue for raising capital in the world, driving economic growth and transforming markets.