India Gas Exchange has launched open auction trading on its platform, this India Energy Exchange-controlled subsidiary said in a statement on Friday.
India’s first gas exchange, IGX received permission for open auction trading from Petroleum and Natural Gas Regulatory Board last week and kicked off the new price discovery mechanism on Monday, the statement said.
“These modifications will allow the participants to view the best prices in the trading system and tweak their bids accordingly,” said Rajesh K Mediratta, Director, IGX in the statement. “Also, we have introduced few ease-of-trading measures like uploading of all bids at one shot reducing traders’ time and chances of errors, and easy access to historical order and trade books.”
The monthly, fortnightly, weekly and weekday contracts now run through the open auction mechanism, while the daily contracts on the platform will continue to be traded through the continuous trading mechanism. In double-sided open auction, both sellers and buyers will have the access to the information regarding price and quantity shared by the sellers on the platform, the statement said.
The market participants trading under daily contracts will not have to wait for the market to end to get the trade information, it added.
“With the introduction of Open Auction mechanism, the buyers will now be able to compare gas prices across the hubs and make bidding decision basis the most competitive gas pricing for the required duration,” the statement said.
Further, the market trading hours on the Exchange have also been extended and the trading window will now be from 10:00 am to 1:00 pm as compared to the previous trading window of 10:00 am – 12:00 pm.