SPIMEX launches petroleum product futures
MOSCOW. Oct 19 (Interfax) - The Saint-Petersburg International Mercantile Exchange (SPIMEX) launched petroleum product futures trading on October 19, an Interfax correspondent reported from the launch ceremony.
The exchange will trade four cash-settled futures contracts - Regular 92 gasoline, aircraft kerosene fuel oil and summer diesel with settlement in December 2012 or March 2013, SPIMEX chief Alexei Rybnikov said.
Rybnimov said the exchange wanted to concentrate as much liquidity as possible in these instruments but that futures with delivery would still be the main instruments.
Market makers including Alor, Otkrytie, Intrast, AvtotsentrGAZ-Tula, FTC and others will provide the initial liquidity.
Gazprom Neft , as guaranteed supplier, will cover physical diesel deliveries.
Deputy Russian Energy Minister Pavel Fyorodov said at the ceremony that two key events for petroleum product trading on the exchange lay in store: the signing of a joint Energy Ministry and Federal Antimonopoly Service (FAS) order on minimum trading volume for petroleum products via the exchange, which should be signed within weeks; and amendments to a federal law (#94) on the placement of the state order, enabling municipal enterprises and government agencies to buy fuel on the exchange. He also said a decree on regular, even oil and petroleum product trading on the exchange was issued recently.
The SPIMEX until now only traded one futures contract, for delivery of diesel, launched in December 2010.
The new cash-settled futures contracts are based on SPIMEX spot market indices, which have been calculated since 2009.
The SPIMEX's Rybnikov said the exchange and TNK-BP planned by the end of 2012 to launch Ai-92 and Ai-95 gasoline and diesel futures with delivery via TNK-Magistral fuel cards. The minimum volume for each contract will be 10 liters. The instrument is designed to insure against price risks in a volatile price environment. An organization or individual can buy a contract.
The program will involve 459 TNK-BP filling stations, jobber-distributors and independent fuel market traders in Russia's five biggest regions initially, but more could be added in time.
The SPIMEX, established in May 2008, launched spot trading in petroleum products in September 2008. It accounts for over 90% of all petroleum product trading on Russian bourses.
The Moscow International Mercantile Exchange and St Petersburg Exchange also trade petroleum products. The latter traded cash-settled futures in diesel based on the Kortes-Gasoil index. The Moscow exchange recently said it wanted to start trading energy futures with delivery on its international section.