Marex Spectron trades first IBP/ NBP locational spread

Marex Spectron has announced that the IBP/NBP locational spread has traded on its broker screen for the first time today. Bord Gáis Energy was the first company to trade the spread by transacting at the IBP and NBP simultaneously; a second spread trade was then completed shortly after the first.

Martin Regan, Marex Spectron’s Head of Energy Sales, commented: “There have been seasonal swings in the pricing relationship between the IBP and the NBP and the development of this spread product allows greater transparency around this relationship. We predict that leveraging the deep existing pools of NBP liquidity through these spreads will help drive growth in IBP and are greatly encouraged by this development.”

Irish Balancing Point (IBP) – the virtual point on the Gas Networks Ireland transmission system for the trading of wholesale natural gas in Ireland

National Balancing Point (NBP) – the virtual point for the trading of natural gas in Great Britain – the NBP is one of the most liquid natural gas markets in the world.