Validating LNG Prices
February 26, 2021
With the event-driven volatility and price-gaps that have been experienced in global LNG markets of late it is becoming clearer to everyone that formation of a reliable price is a a key element to mitigating the risk of buying and selling LNG. When prices gap in dollar handles not only day to day, but often between trades, it is extremely difficult for buyers and sellers to know what the price actually is.
The Redwood Marketplace platform was built with this in mind. The pre-trade anonymity coupled with live execution allows buyers and sellers to set bookends on the market price for any location, term, pricing option or other trading requirement that a buyer or seller might have. By listing a bid or an offer on the open-access markets, you encourage others to challenge your price assertion. Validation happens through the risk of execution and matching.
All it takes is for people to consider posting a bid or an offer on a live trading screen with these features and the beginnings of reliable price formation will follow. We are happy to help anyone with this, and we can provide everything you need to help with your trading decisions using the platform to augment your existing processes.
Feel free to contact me anytime to discuss or to get set up.
Ajay Batra
President and CEO, Redwood Markets