Griffin’s implicit allocation system launches with strong support

LONDON 1st May 2019: The recent launch of Griffin’s electronic implicit allocation mechanism has been well received by the market accounting for more than 94% of the capacity allocation made through brokers in its first month of operation.

Griffin launched its new capacity matching system in partnership Interconnector (UK) Limited at the start of April offering the opportunity to apply for unbundled gas pipeline capacity between Bacton and Zeebrugge. The system allows IAA shippers to apply for capacity allocations in the pipeline using Griffin’s own online Portal.

Capacity applications posted on the Portal are matched with associated volumes of physical gas traded through Griffin’s OTF trading platform, leveraging Griffin’s existing liquidity. Matching capacity through Griffin’s OTF in this way has the added advantage of ensuring that any associated physical gas transactions are not classified as financial instruments due to the C6 REMIT carve-out in MiFID II.

Griffin’s Portal brings greater transparency and efficiency to the implicit allocation process enabling traders to view available capacity for specific time periods and post applications in real time. Details of completed capacity allocations are subsequently published in the Trayport API – alongside physical gas transactions – so that customers will be able to straight-through process fully compliant allocations and associated gas trades into their back office systems.

Capacity is available on Griffin’s Portal for the following tenors: balance of month, next three months, four quarters, six seasons and five gas years.

Traders requiring access to Griffin’s Portal should contact their usual Griffin broker to obtain a login.

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