Natural Gas Markets
Natural gas trading markets have developed a wide range of trading products for use in financial hedging and physical delivery. Evolution Markets offers introductory brokerage of both physical and financial natural gas products in the U.S. and Europe. In addition, our brokerage teams specialize in facilitating trades in derivative products, allowing our clients to cost-effectively manage price risk in U.S., U.K., and European natural gas markets.
Evolution Markets acts as a broker in natural gas futures and derivative contracts cleared on commodity exchanges, such as CME, ICE, and NODAL. When doing so, it is acting through its NFA-regulated subsidiaries, Evolution Markets Futures LLC for U.S. transactions and Evolution Markets Ltd. for European transactions.
Evolution Markets brokerage physically settled products in the Western U.S. and Canada, as well as delivery locations in the Mid-Continental and Northeast regions of the U.S. Physical products include:
Evolution Markets brokerage physically settled products in the Western U.S. and Canada, as well as delivery locations in the Mid-Continental and Northeast regions of the U.S. Physical products include:
Monthly Index: The exchange of physical gas for a published monthly index price.
Daily Index: The exchange of physical gas for a published daily index price.
Fixed Price: The exchange of physical gas for a fixed price established today.
Physical Basis: The exchange of physical gas for a basis differential to the NYMEX natural gas contract.
In addition, Evolution Markets brokers financial natural gas structures, which can be used by counterparties in a variety of supply and delivery points. Basic financial structures include:
Basis Swap: The exchange of a differential to the NYMEX natural gas futures contract for a published monthly index price.
Fixed-for-Float Swap: The exchange of a fixed price for a published monthly index price.
Swing Swap: The exchange of a fixed price for a published daily index price.
Index Swap: The exchange of a published monthly index for a published daily index.
To learn more about natural gas physical and basis markets, contact: +1 (914) 323 0270 or +1 (713) 583 9950, natgasdesk@evomarkets.com.
Evolution Markets brokers a variety of options transactions for participants in natural gas markets. Options trades enable counterparties to hedge natural gas price risk by locking in prices at a determined level or retaining the ability to sell natural gas at a certain price. The highly liquid options market consists of standardized exchange-cleared instruments, as well as bespoke OTC transactions. Common options products include:
Fixed Price Options: Puts, Calls, or combined structures based on one or a multiple of fixed priced strikes
Basis Options: Puts, Calls, or combined structures based on one or a multiple of basis strikes.
The above products are for numerous pipelines as well as for NYMEX Henry Hub. They can be transacted with a hedge or without, and traded for a variety of time periods going out several years.
To learn more about natural gas options markets, contact: +1 (914) 323 0273, natgasdesk@evomarkets.com.
Evolution Markets London-based brokerage team facilitates physical, financial, and options transactions in British and European natural gas markets, including both a prompt and curve service for major trading hubs, such as TTF, NBP, CEGH VTP, Gaspool, NCG,PEG, PSV, and Zebrugge.
European natural gas markets trade largely as a physical market, using an “entry/exit” model based on virtual trading points (VTPs) in most major European countries. Counterparties transact on a bi-lateral basis for swaps and forwards or futures and options for exchange-cleared transactions.
Our global gas team brings together liquidity from our brokers in London, New York, Houston, and Singapore, allowing us to specialize in structuring spread and arbitrage trades between Europe and the United States’ highly liquidity Henry Hub or Asia with the Japan-Korea Marker (JKM).
To learn more about our European natural gas markets brokerage services, contact: +44 (0) 207 264 4550, eurogasdesk@evomarkets.com.