This interview sees Alexy Mileev, CEO and founder of Route4Gas, discuss the company’s latest offering designed to reduce post-trade risk.
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xtreme volatility continues across European energy markets and gas prices are showing a more than 2000% increase since record lows in May 2020. As a consequence, major market players had to extend their credit lines significantly to manage higher prices. This comes at the cost of higher margin calls and fewer trade opportunities, adding the problem of reduced liquidity to the gas market. To help solve these problems, the Amsterdam, Netherlands based company Route4Gas has announced it is now ready to offer post trade risk reduction services. This will offer to the European gas market a solution that significantly reduces market exposure and is unique, multilateral, fully automated, anonymous and crossmarket. In this discussion, Alexy Mileev, CEO at Route4Gas,
explains the problems he sees and how his company can help resolve them.
How would you describe the problem the European natural gas market is currently facing? If you look at the TTF price curve recently, it actually looks more like the Burj Khalifa than anything else. While there are still many uncertainties on the exact causes of this, and whether they are supply or demand driven or a combination of both, the results are very clear: a huge increase in prices and volatility. This in turn brings certain risks into the market. There are extreme margin calls, we don’t talk about millions – we talk about billions at the moment. How can the market
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