ICE says TTF trade hit record high in May

Intercontinental Exchange (ICE) said June 6 a record number of Dutch Title Transfer Facility (TTF) natural gas futures and options traded in May as the European gas market managed natural gas price exposure.

For the month, ICE said, a record 5.7mn TTF futures and options were traded, equivalent to some 4,158 Twh, also a record.

Liquidity in the benchmark TTF market has grown strongly in 2023, ICE said, with open interest up 39% year-over-year at 2.6mn contracts, the highest level since January 2022. In addition, ICE is seeing record market participation this year, with hedging in futures and options extending out to December 2031.

“ICE TTF is the global benchmark for natural gas,” said Gordon Bennett, managing director of utility markets at ICE. “The TTF futures market sends price signals which market participants rely upon to manage their global natural gas price exposure, as well as pricing the flow of natural gas in Europe.” 

The success of the TTF derivatives market has helped Europe balance supply and demand for natural gas and identify and clear infrastructure bottlenecks that emerged as flows from Russia were reduced in the wake of its invasion of Ukraine.

About 25mn TTF contracts have traded this year, up 17% from 2022, with particularly strong activity in TTF option trading, which was 179% higher yr/yr, with open interest up 68%. More than 1mn TTF options were traded in May, the second highest monthly volume since the contract was launched in 2013.

Open interest across ICE’s global natural gas portfolio, which includes TTF, NBP in the UK, Asia’s JKM LNG, Henry Hub in the US and AECO in Canada, is 31mn, a 10% increase over 2022, it said.