Italiano

About MAGi

The MAGI is an independent, reliable and transparent index of the month ahead Italian gas price at PSV, based 70% on confirmed transactions and 30% on a market-wide survey. The methodology is robust and incorporates safety features that eliminate “gaming” of the index.

The survey component and the 70/30 weighting of reported transactions and average assessments for the month so far are published each day, so participants can track the evolution of the index. Before publication, an index auditor double-checks all inputs. Each month the survey inputs, confirmed trades and index spreadsheet model are published to increase market transparency.

MAGI-Q is a quarter ahead index aligned with the frequency of the market component of the residential gas tariff. Based on a 70/30 split of transactions reported and market survey; it is the quarterly version of MAGI (Month Ahead Gas Index). Through transparent publication of MAGI-Q and the data used to calculate it, MAGI sponsors believe that PSV traders can demonstrate sufficient liquidity to allow MAGI-Q to be used as the reliable market reference in the residential gas tariff formula.

Before publication an index auditor double checks all inputs. Each month, the survey inputs,  confirmed trades and index spreadsheet model are published to increase market transparency.

Why?

Month ahead indices are often preferred as the benchmark in contracts for supply to power plants and industrial consumers, or as the basis of purchases from independent gas producers because they are based on larger trading volume and display less volatility than day ahead or balancing market prices.

MAGI is transparent, independent and reliable: it will reflect the fundamentals of the Italian gas market as they are understood in the month prior to delivery and will allow all market participants to express their view of the index value through the transactions that they execute and through the bids and offers they make.

A robust index creates the possibility for consumers to buy gas or producers to sell gas at a reliable market price and gives market participants the possibility of using financially settled swaps to hedge market exposure in a credit-efficient manner.

Who?

The sponsors of the index are Alba Soluzioni and Tradition. Alba Soluzioni is calculation agent, TFS is the co-ordinating partner. Any company who has something to add and who is interested can become co-owner subject to partner agreement.

The “franchise” of the index (the amount of counterparties that are asked for survey or trade input) at launch is around 60 companies. The list will be published each month and updated as the index grows.

Alba Soluzioni and TFS are committed to continue to publish the indices and to remain transparent in all matters of methodology and distribution.

When?

MAGI indices, went live on the 2nd July 2012 but been in detailed research and development since mid 2011.

Where?

MAGI and MAGI-Q indices are published through www.MAGIndex.org, GeEO Italian Gas & Power and selected specialist Italian newspapers and trade publications.

HOW MUCH

MAGI is a trademarked product but may be used subject to license agreement which is currently free of any charge.

For more information email Info@MAGIndex.Org or go www.MAGIndex.org or contact one of the three partners at:
Www.AlbaSoluzioni.Com
www.tradition.com

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