The Indian Gas Exchange (IGX), India’s first automated gas exchange, has introduced open auction trading on its platform, it said on March 26.  

The move is aimed at easing trade for market participants and allowing them the price and volume visibility across hubs, IGX said. “The new trading features would encourage greater participation on the exchange and help to build the gas markets.” 

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The monthly, fortnightly, weekly and weekday contracts will have an open-auction mechanism, while the daily contracts will be traded through a continuous trading mechanism. In a double-sided open auction, both sellers and buyers will have access to the information regarding price and quantity shared by the various sellers on the platform. IGX said that the auction would lead to the discovery of a single uniform clearing price for each contract type. 

With the introduction of an open auction mechanism, the buyers will now be able to compare gas prices across the hubs and make bidding decision basis the most competitive gas pricing for the required duration. The continuous trading methodology introduced in daily contracts will facilitate immediate trading for short-duration contracts, IGX said.  

The market participants trading under daily contracts will not have to wait for the market to end to get the trade information. It will also allow trading multiple times during the trading hours. 

IGX, which was launched in 2020, currently offers trade in five contracts at three physical hubs - Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh. It has over 500 registered clients and 16 members.