EEX invites comments on the extension of trading hours for benchmark gas contracts

The CEO of Deutsche Boerse's EEX (Europe's largest electricity and gas 'exchange) said that the company is currently in discussions with market participants about whether to extend trading hours on Europe's main gas benchmark.

EEX - peer Intercontinental Exchange - announced last month that it would extend the daily trading hours of European gas and electricity contracts from 0800 CET until 1800 CET on April 13 to 0150 CET (2300 CET) (0050 GMT-2200 GMT).

Peter Reitz, CEO of EEX, said that the company is "listening closely" to what the market participants have to say about the issue, and added that the feedback has been mixed.

DOES THE MARKET WANT IT?

"Regulation doesn't matter much there. The market will decide if it is a good idea. It only makes sense if you are talking about the "most liquid products", he said. On the sidelines the E-World trade show in Essen.

Reitz said that some market participants saw the merit of extending trading hours at TTF, Europe’s main gas trading hub, in case it became a benchmark for global trading.

Europe relies more on 'globally traded' liquefied gas. It is linked to the developments in the U.S. Henry Hub, and Asia's JKM contract, with the U.S. as a major exporter, and Asia as the main competitor for?demand?.

Reitz stated that he didn't see much interest among traders in electricity contracts, saying: "Trading European energy?here? at one in morning doesn't generate?a lot?of enthusiasm".

He cited clients in Japan as one of EEX’s top five markets to explain why extended trading could make sense.

They don't only trade Japanese products with us; they also do so for European goods. They say "Yes, that's something we could do during the day." (Reporting and editing by David Holmes; Nora Buli and Christoph Steitz)

(source: Reuters)