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ICE TTF Front Month Margin Cut as Volatility Declines

NATURAL GAS

ICE has the cut the margin requirements on European front-month TTF gas by nearly 23% as winter supply risks and price volatility eases.

  • The initial margin rate was cut from 13.86€/MWh to 10.722€/MWh from Jan 26.
  • Margins for contracts delivering this year also dropped by 8-19%, but the margin rate for the December contract edged higher.
  • All contract margins for delivery periods from July 2025 onwards increased.
  • The margin is lower in absolute terms but is higher now at 38.4% compared to 31.8% for the 27 November margin according to Argus.
  • TTF second month implied volatility is down to around 75% from 98% at the start of the year and from a high of 174% in June 2023.

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