How specialized trading sessions are conducted
Trading is conducted using a one-sided auction mechanism: the seller lists an item for sale, buyers compete on price, and the transaction is concluded with the highest bidder.
- Opening of the session. The Seller submits a request to open a trading session to the Administrator (PP BETS) via email or telephone.
- Registration of orders. The Seller enters the Item for sale and signs it with an electronic signature. The period for registering orders within the Item entry ends no later than 10 minutes before the start of trading; purchase orders may also be submitted during the trading session. The Item entry specifies:
- volume (MWh) and number of lots;
- starting price in euros per MWh;
- delivery point and delivery period;
- payment terms and contract conclusion deadline.
- Draft contract. The Seller must attach a draft purchase and sale agreement in both Ukrainian and English to the submission. A submission that does not include a draft contract will not be admitted to the bidding process.
- Limit control. PP BETS accepts a Position only within the remaining Trading Limit: the limit minus the amount already sold and minus the Seller’s other active Positions. Any Position exceeding the remaining balance is automatically rejected.
- Bidding. All Positions are traded simultaneously, while the lots within each Position are traded sequentially. A Buyer raises the price by at least one increment (0.03 EUR per 1 MWh) during the waiting period for a better offer (2 minutes). Buyers may submit counter-offers regarding price and lot quantities; the Seller decides whether to accept them. The Seller may modify the price, combine lots into packages, or withdraw or add lots within the established limit.
- Conclusion of the agreement. The agreement is concluded with the Buyer whose offer holds the leading position after the expiration of the waiting period and becomes binding from the moment of registration in PP BETS. The price established during the auction is final and remains unchanged upon the conclusion of the contract.
- Exchange Certificate. The parties sign the certificate within the PP BETS software system either after the expiration of the waiting period for a better offer or within two hours of the trading session’s conclusion: residents use an electronic signature, while non-residents use an operational key. The exchange registers the certificate no later than the following day. Failure to sign the certificate does not invalidate the concluded transaction but constitutes grounds for the imposition of sanctions.
- Contract. The Parties shall enter into a sale and purchase agreement on the terms of the draft attached to the Item, at the tender price and within the timeframe specified in the Item.
Information transparency. The Exchange publishes the date and time of each session on its website, as well as the volume, starting price, and delivery point for the posted positions. Results are published in the form of a weighted average price bulletin; the identities of the parties to the transactions are not disclosed. The Exchange transmits information regarding sellers and the volumes they have sold to the Ministry of Energy in accordance with the established procedure.
Post-trading: settlement, license, and export
Settlement
- The Seller and the Buyer shall pay the commission fee in accordance with the Exchange’s tariffs no later than 3 business days after the trading session, based on an invoice issued by PP BETS.
- Settlement for the gas shall be made directly between the parties under the purchase and sale agreement.
- Guarantee fee shall not be made to the clearing institution’s account unless required by the internal documents of Ukrainian Clearing House LLC.
- The Seller may require security from the Buyer, specifically prepayment prior to the start of the Delivery Period. The terms regarding security within a specific Position shall be identical for all Buyers.
Licensing and Export
- The exporter is the Seller—a gas-producing enterprise included in the Ministry of Energy’s list; exports are carried out under a license and within the volume sold at specialized trading sessions. The zero export quota for gas of Ukrainian origin does not apply to such operations.
- The license is issued by the Ministry of Economy and Environment; applications are reviewed within 10 calendar days. The Ministry of Economy obtains the approval from the Ministry of Energy (provided within one day) independently, without the exporter’s involvement.
- Gas is delivered at the Delivery Point during the Delivery Period – no later than the last day of the second month following the month of trading.
- The GTS Operator records actual exports and reports them to the Ministry of Energy monthly by the 15th.
Upon the request of the Ministry of Energy, sellers are required to submit information and documents regarding compliance with the Procedure within 10 working days.
Responsibility
