Fortnightly contracts are available for delivery for fortnight (1st -15th and 16th – End of Month) for physical delivery of gas. The price and quantum of gas to be traded are determined through double-sided uniform price auction method. The operations are carried out in accordance with the Market Rules and By-laws of IGX. IGX holds the right to modify parameters as specified by it from time to time if needed.
Trading of contracts for delivery from 06:00 hrs (D) to 06:00 hrs for 15/16 days each for a month.
Double-sided anonymous auction bidding process.
Trading window will be available specified in Trading and Settlement Calendar.
Offers both delivered and ex-hub contracts.
Risk management through the requisite margin, including any additional margin as specified for the respective trading segment or the type of contracts in the Market Rules.
- Participants enter bids for sale or purchase of gas for delivery depending on its contract specification.
- Bidding session: 1000 Hrs. – 1400 Hrs.
- The bids entered are stored in the central order book. The bids entered during this phase can be revised or cancelled till end of bid call period i.e.14:00 hrs. of trading day.
- At the end of the bidding session, bids for each buy and sell order are matched using the price calculation algorithm.
- All purchase bids and sale offers are aggregated in the unconstrained scenario. The aggregate supply and demand curves are drawn on Price-Quantity axes. The intersection point of the two curves gives the market clearing price (MCP) and market clearing volume (MCV) corresponding to price and quantity of the intersection point.
- MCP and MCV are determined for each contract as a function of demand and supply which is common for the selected buyers and sellers.
- Selected members are intimated about their partially or fully executed bids and other trade related information.
Pipeline Capacity Availability and Funds Availability
- MCP and MCV are used to calculate the obligation of the selected participants.
- Funds availability in the settlement accounts of the participants is verified based on the obligation.
- In case of insufficient funds, the trades of such a participant may be deleted.
- Required pipeline capacity is sent to pipeline operators (Transporters) for scrutiny and allocation is requisitioned based on availability.
- Confirmation of capacity booking from pipeline operators received to buyer in Ex-Hub and IGX in Delivered transactions.
- Obligation is sent to the Clearing Banks for Pay in from buying Members and the Bank is asked to confirm the same.
- Daily Nomination are sent to pipeline operator from buyer in Ex-Hub and IGX in Delivered transactions.
Scheduling and Allocation
- Schedule will be sent by pipeline operators to Buyer/IGX. Also based on allocation quantity the pay-out will be released to seller.