Nodal Exchange`s natural gas products can be used to hedge price risks in natural gas markets. In addition, our natural gas contracts offer portfolio margin advantages with participants` Nodal Exchange performance portfolios, resulting in greater capital efficiency. In calculating the exchange-traded natural gas price index, adjustment factors or transportation rates are not used. The only information used is the prices and volumes of the contracts. As a result, the index is the most accurate indicator of current average exchange-traded natural gas prices. Henry Hub is a gas distribution center near Erath, Louisiana, United States. It plays a leading role in natural gas pricing. This distribution node is located on the cross of the 8 largest U.S. pipelines. The Henry Hub Award serves as a guide for spot contracts. The listed natural gas price index contains the following indicators: the daily index spread is defined as the difference between the weighted average price of day ahead or day off contracts concluded at significant balance sheet points and the corresponding value of the exchange-traded natural gas index. The indices are calculated for listed commodities: Henry Hub Natural Gas Futures is the most liquid natural gas contract in the world.
The Henry Hub settlement price is equal to the price of natural gas futures traded on the Chicago Mercantile Exchange (CME). The exchange-traded natural gas index is calculated monthly as a weighted average price among all contracts in the month ahead concluded at significant clearing points. The calculation does not take into account contracts entered into in negotiated contracts. The weighted average price of natural gas in the case of Month Ahead-Deals, calculated on the basis of stock trading results. Natural gas has been a critical component of North America`s energy economy for decades, but recent fundamental changes in both supply (production) and demand (electricity generation and exports) have brought natural gas back to the forefront of our fiscal energy debate. On the supply side, technological improvements focused on drilling and extraction increased natural gas production by 50% between 2008 and 2018. Persistent price declines have spurred strong demand growth in the form of newly constructed natural gas and industrial facilities, as well as exports. Changing dynamics in natural gas supply and demand have created new opportunities for risk management.
In January 2020, a cash-settled gas futures contract will be traded in the commodities sector of moEX`s derivatives market. The contract is executed at the price of The Henry Hub Natural Products Union Futures contract on CME, a widely used international repository for natural gas and the third most popular commodity contract in the world. The Moscow Stock Exchange and cme signed an agreement in November 2019. Check our rates, including rates, terms and conditions and appointments to Three New Futures – on shares of Yandex and DRs of Tinkoff Bank and X5 Retail Group – will complement MOEX`s existing equity derivatives offering in early 2020. Natural gas prices are calculated in British thermal units (MMBtu). MOEX`s range of interest rate derivatives is extended to USD-denominated RUSFAR futures. Rusfar tracks the FX prices of the U.S. dollar on the MOEX money market and is calculated on the basis of THE operations of GCC-Repo, i.e.dem most liquid segment of the market.