UK Gas - NBP

NOS offers clearing of NBP gas derivatives. The contracts are financial futures cash-settled against the monthly average of ICIS Heren’s day-ahead NBP gas price assessment (mid-price). NOS offers balance of month, months, quarters and season contracts on NBP. NOS also offers European style options with delivery of the underlying future at strike price on expiry day. All products are traded in pounds sterling (GBP), i.e. pence/therm.

The contracts will be offered through participating OTC brokers.

By offering cleared NBP gas derivatives, NOS provides an effective hedging tool to the energy industry as well as trading opportunities to financial investors. Through clearing, participants have several positive effects on risk management and operations:

• Guaranteed performance of the contracts, extremely low credit risk
• Elimination of credit assessment of counterparts and valuation of receivables
• Effective book-keeping, single counterpart, single account, single cash flow, all reports and risk management control through systems offered by NOS
• Anonymous trading
• Effective pricing, financial investors prefer cleared markets