First UK Gas option cleared by NOS

NOS cleared the first UK Gas Options contract traded at intermediary broker Spectron. This is an important step of what is expected to be a major contribution in the UK Gas derivatives market.

Combined with a full range of prompt and curve swaps, NOS is serving the UK gas market a first suit of cleared gas swaps and options. The swaps are cash settled against the ICIS Heren day-ahead assessments for NBP. This is expected to improve the participants’ ability to hedge and manage their revenue/cost risks.

The options are European style covering months, quarters and seasons. The options settle into the underlying futures contract on expiry day. All options will be netted with the future contracts, in order to keep locked up capital at a minimum.

Please see Product Specification Annex 5M for more details