The Intercontinental Exchange (Ice) has dropped its margin requirements for trading the Dutch TTF front-month contract by more than 31pc, effective from 26 February's gas day.
The margin requirement fell to just under €5.96/MWh, from the €8.67/MWh that was applicable from 13 February and the lowest since July 2021 (see graph). Margins for contracts with later delivery periods also universally fell, by 12-29pc.
This is the third consecutive drop in margin requirements in the past month. Requirements declined to €10.72/MWh, effective from 26 January, and then by €8.67/MWh from 13 February.
This fall in the collateral needed to trade some of Europe's most liquid contracts tracks steady price falls at the TTF and other European markets. Argus assessed the TTF front-month contract at €23.30/MWh at the most recent close on 23 February, down from €27.94/MWh on 26 January. The front-month price has decreased steadily since October last year as storage fill levels have remained above average and Europe has experienced its second consecutive mild winter.
The Ice TTF front-month margin peaked at €80.973/MWh on 9-23 March 2022 and has been on a downward trajectory since that time. But it has remained volatile, moving broadly in tandem with gas prices.
