Tradition, one of the world’s leading interdealer brokers, today announced that it had successfully brokered the first LNG trade on ICIS Heren’s East Asia Index (LNG EAX).
The landmark transaction, traded via Tradition through the CME Direct Screen, marks the first ever OTC brokered exchange-cleared LNG trade.
Financially settled in September on the CME Europe, the contract pricing was based on ICIS Heren Assessment prices from 16 July to 15 August, 2011.
Luca Bertali, LNG Manager, Tradition said:“The execution of this first trade is a significant milestone, marking another step in the creation of a level trading landscape for market players. The product has been building momentum for the last few weeks as more companies have been signing up to trade. We see the cleared swap already bringing new counterparties to the LNG market and we’re confident liquidity will build.”
Michael Anderson, Head of Energy at Tradition said: “We feel that the rapidly growing interest in hedging and trading LNG risk has not been properly catered for up until now. TFS has launched the broking of this index, traded as a cleared swap on the CME platform, to change that, and I am delighted the strategy has been rewarded with this first trade”.
The deal was done for September at $13.90/MMBtu (€38.74/MWh) for 10,000 MMBTU.