Course 03 of 20 · Natural Gas Desk Academy

Hubs, Quotations & Regional Markets

Stage A, Gas literacy and measurement. Level 2 of 10.

How a hub forms a quoted price, how published indices are constructed and assessed, and where liquidity physically sits across regions.

111 chapters · 10 modules · every chapter one 8 to 10 minute explainer · builds on: Course 01, Course 02

Enrol or enquire See the 111 chapters
How a chapter is sized

One chapter is one idea taken to the point of use

Each chapter is a single self-contained explainer of 8 to 10 narrated minutes, covering one idea to the point where you can use it.

Chapters run in order. Each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

10 modules · 111 chapters

Open any module for its full chapter list, in teaching order.

M0 The Trading Point as a Priced Location Ch 1-10
  1. What Makes a Hub a Hub
  2. The Pipeline System Beneath the Quotation
  3. The Physical Hub: Title Transfer at an Interconnect
  4. The Virtual Trading Point and the Balancing Zone
  5. Classes of Delivery Point Compared
  6. Who Runs a Trading Point and Why It Matters
  7. The Point as a Contractual Address
  8. Why Most Locations Never Become Hubs
  9. Hub Development as a Deliberate Project
  10. The Point Map You Will Use Throughout
M1 How a Price Forms at a Point Ch 11-21
  1. The Transaction as the Only Real Price
  2. Bid, Offer and the Spread Between Them
  3. Depth Behind the Best Price
  4. The Marginal Buyer Sets the Number
  5. Price Discovery Against Price Publication
  6. Three Ways to Price a Deal
  7. What a Quotation Actually Specifies
  8. Quoting a Day Against Quoting a Month
  9. Who Stands on Each Side of a Quote
  10. Market Makers and Why a Price Persists
  11. A Worked Price Formation at a Thin Point
M2 How an Index Is Built Ch 22-34
  1. What a Price Index Is For
  2. The Price Reporting Agency and Its Methodology
  3. Anatomy of a Methodology Document
  4. The Survey Index and How It Is Gathered
  5. Inside a Submission
  6. The Volume-Weighted Average and Its Arithmetic
  7. Mean, Median and Trimmed Measures
  8. The Assessed Index and Editorial Judgement
  9. Assessing a Market That Did Not Trade
  10. The Exchange Settlement Price as an Index
  11. Survey, Weighted and Exchange Indices Side by Side
  12. Index Governance, Oversight and Conflicts
  13. Reading a Methodology Change Notice
M3 Index Conventions and What They Bind Ch 35-45
  1. The Monthly Index and the Bidweek Window
  2. What Bidweek Does to Prices
  3. The Gas Day and the Daily Trading Window
  4. Daily Index Construction and Its Timetable
  5. Weekends, Holidays and Multi-Day Packages
  6. Monthly Against Daily: Choosing a Reference
  7. What Referencing an Index Actually Binds You To
  8. Index Unavailability and Fallback Provisions
  9. Index Cessation and Benchmark Transition
  10. Corrections, Restatements and Settled Invoices
  11. A Settlement Worked From a Published Index
M4 Measuring Liquidity Ch 46-56
  1. What Liquidity Means at a Trading Point
  2. The Spread as a Liquidity Measure
  3. Traded Volume and the Churn Ratio
  4. Counting the Counterparties
  5. Open Interest and Where It Exists
  6. Liquidity Along the Tenor
  7. Estimating Liquidity Without Good Data
  8. What Illiquidity Costs You
  9. Liquidity and How Much to Trust a Price
  10. A Liquidity Scorecard for Any Point
  11. Why Liquidity Concentrates
M5 Reading the Forward Curve Ch 57-68
  1. What a Forward Curve Is
  2. Where the Points on a Curve Come From
  3. Prompt, Balance of Month and Front Month
  4. Seasons, Quarters and Gas Years
  5. Contango, Backwardation and What Shapes Mean
  6. The Seasonal Shape of a Gas Curve
  7. Reading a Winter Against Summer Quotation
  8. Building a Monthly Curve From Quoted Strips
  9. Marking a Curve and the Daily Snapshot
  10. The Illiquid Tail of the Curve
  11. Curve Shapes Across Two Locations
  12. A Curve Read End to End
M6 Venues: Where the Quotation Is Made Ch 69-79
  1. The Bilateral Over-the-Counter Trade
  2. The Voice Broker and What It Provides
  3. Electronic Broker Screens
  4. Exchange-Traded Gas
  5. The Standardised Contract Specification
  6. What Clearing Changes Commercially
  7. Bridging Venues: Exchange for Physical
  8. Blocks, Off-Screen Deals and Size
  9. Anonymity and Information Leakage
  10. Choosing a Venue for an Order
  11. Why the Same Gas Prints Two Prices
M7 The Deal Record Ch 80-89
  1. From Agreement to Written Record
  2. What a Trade Recap Contains
  3. The Price Basis Field on a Confirmation
  4. The Confirmation Under a Master Agreement
  5. Matching, Affirmation and the Unconfirmed Deal
  6. The Broker Confirmation and the Three-Way Match
  7. When Two Recaps Disagree
  8. Trade Capture and the System of Record
  9. Deal Records Against Pipeline Confirmations
  10. Reportable Trade Data
M8 The Regional Map Ch 90-102
  1. Comparing Two Gas Markets on Four Axes
  2. The Hub-Centred Market Model
  3. The Pipeline-Point Market Model
  4. The Two Models Compared
  5. Markets Priced From Delivered Cargoes
  6. Oil-Indexed Pricing as a Quotation Form
  7. Hub-Indexed Against Oil-Indexed, Compared
  8. Regulated and Administered Prices
  9. Establishing Value Where Nothing Trades
  10. Why Some Points Barely Trade
  11. The Anatomy of a Failed Trading Point
  12. What Makes a New Point Succeed
  13. The Regional Liquidity Map
M9 A Point Assessed, and the Limits of a Quotation Ch 103-111
  1. A Point Assessment, Part One: The Physical and Institutional Facts
  2. A Point Assessment, Part Two: The Published Price Landscape
  3. A Point Assessment, Part Three: The Liquidity Verdict
  4. A Point Assessment, Part Four: How to Quote There
  5. When a Quoted Price Is Not a Fair Value
  6. Benchmark Integrity and Why Methodology Matters
  7. What a Quoted Price Cannot Tell You
  8. Habits of Someone Who Reads Prices Well
  9. Where the Price Thread Is Picked Up Next

The brochure gives each of these 111 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 3 of twenty

It stands alone, and it is also the entry point to the Natural Gas Desk Academy pathway.

Enrol or enquire See the whole pathway