Charlesworth said valuations would be offered for both 'at-the-money' and 'out-of the money' power and gas derivatives. "This adds value to the forward curve and offers a range of different instruments on the options side," he said. Current power and gas data providers typically focus on the cash side of the business, he added.
The gas contracts covered are for delivery in the UK, but Totem plans to add valuation services for Zeebrugge and Bunde gas delivery locations in November. Power market contracts cover the UK, France and Germany, with the service extended to cover the Netherlands, Austria, Switzerland, Spain and the Nordic region next month.
Charlesworth said data fed into its systems comes from the risk management departments of the energy and gas companies, rather than from traders. He believes this will alleviate questions related to the integrity of the data.
Totem launched a similar service for oil contracts in May this year (Totem launches valuation system to help energy traders).
- Regulators to scrutinise CCP default auctions
- People moves: Bank of America names new Apac chiefs, Wilkinson leaves LGIM, Lloyds loses Coutte, and more
- VAR surges, revenues tank at French banks hurt by volatility
- A rush on Libor fallbacks to head off holdouts
- Swaps data: SOFR volume and margin insights