Basis trading to emerge in European gas

Basis trading is beginning to emerge around regional hubs in European natural gas and could gain in popularity, predicted European energy exchanges at a conference on October 9.

"You will see basis trading in Europe. Basis trading is already emerging in the [over-the-counter product] complex, but no doubt it will be in the exchange as well," said Bert den Ouden, chief executive of Amsterdam-based energy exchange APX-Endex, speaking at Gastech in London.

Basis trading involves counterparties buyi