Ukraine should launch gas futures trading - Makogon
Ukraine should create a reliable infrastructure for organized gas trading and move in the direction of development of derivatives trading, says Sergiy Makogon, director of LLC Gas Transmission System Operator of Ukraine (LLC GAS TSO OF UKRAINE).
«Thanks to the Law on the Natural Gas Market adopted in 2015, Ukraine's legal field come closer to EU energy legislation. But we also need to move beyond the rules of the European financial market and create a robust infrastructure for organized gas trading that follow EU requirements. After all, we can build not only efficient spot gas trading but also derivative gas trading. This will open up new opportunities for gas suppliers and consumers alike, they will be able to hedge the risks of fluctuations in gas prices throughout the year, as well as currency risks», - Makogon wrote on his Facebook page.
He recalled that stock trading contracts are an important tool for market price setting for they gas supplies, and they form the equilibrium price in the market.
According to Makogon, the bill # 2284 of October 17, 2019. On Amendments to Certain Legislative Acts of Ukraine on Facilitation of Investment Attraction and Introduction of New Financial Instruments, currently considered by the Verkhovna Rada, will create the necessary financial infrastructure for Ukraine for organized gas trade and derivative contracts for it.
Currently, gas trades in Ukraine are conducted on the Ukrainian Energy Exchange (current and next month), Smarttender (only one trader- Geo Alliance) and Stolytsia (Esco-Pivnich LLC). .