NATURAL GAS: TTF Open Interest Increasing as Volatility and ICE Margins Fall

European natural gas aggregate open interest has seen a gradual increase since December as prices have trended lower and assisted by falling ICE margin rates.

• ICE have cuts margin rates on European natural gas from 9 March to lowest since October 2021 as the volatility from 2022 subsides. The margin is a quarter of the peak in September last year to help ease the cost of trading.
• ICE TTF aggregate open interest has risen from a low of around 0.89m contracts in early December up to approximately 1.07m today. Despite the recovery open interest is still well below the peak of 2m in 2021 before the price surge and volatility of 2022.
• TTF historic 30 day volatility is down to 55% from around 106% at the start of February and 140% in September last year.

Source: Bloomberg