| <%@taglib uri="tiles.tld" prefix="tiles"%>
<%
String tilesRequestedPage = (String)tilesRequestedPageObj;
%>
|
 |
 |
 |
| Texas Gas Zone SL Basis Swap Futures (Platts IFERC) |
|
Texas Gas Transmission is an interstate natural gas transmission company which owns and operates a natural gas pipeline system originating in the Louisiana Gulf Coast area and in East Texas and running north and east through Louisiana, Arkansas, Mississippi, Tennessee, Kentucky, Indiana and into Ohio, with lines extending into Illinois.
Texas Gas Zone SL draws gas from the deposits of southern Louisiana along the Gulf Coast and interconnects with numerous major interstate pipelines.
The volatility of natural gas prices has given rise to a basis market that is quoted as a differential to the price of the New York Mercantile Exchange, Inc., natural gas futures contract which has evolved into the benchmark for forward natural gas markets industry-wide due to its liquidity and transparency.
To better help market participants offset their price risk in this major market center, the Exchange provides a Texas Gas Zone SL basis swap futures contract. The final settlement is calculated as the Platts Inside FERC's Gas Market Report Texas Gas Zone SL index price minus the final settlement price of the Exchange's benchmark natural gas futures contract for the corresponding month on the last trading day. Platts Inside FERC calculates the Texas Gas Zone SL index price from its monthly bid week survey of buyers and sellers who are shipping base-load gas on the pipeline.
The contract size of 2,500 million Btus represents a commonly traded market unit and is one-quarter of the size of the natural gas futures contract, giving market participants additional flexibility in managing price risk. The contract must be traded in a multiple of the number of calendar days in the month.
All positions will be aggregated and margined according to the value at risk as calculated by the SPAN® system. Cross margining offsetting positions across markets can reduce margin obligations.
|
|
 |
|