Exchange of short and medium term segments
for secondary capacity trading

Transaction on capsquare		Settlement between buyer and seller
Transactions made on capsquare follow the Initiator/Aggressor model:  For example, a market participant submits a bid. Submitting a bid (or offer) requires indicating a price and a volume. There are no constraints as to price setting: you are free to determine at which price you want to sell or buy. Other market participants can submit an offer with a higher price and the same or different volume. Market participants can adapt their bid or offer to evolve to a transaction. To conclude a transaction, a market participant lifts the offer or bid and becomes the Aggressor, while the other party becomes the Initiator.		As soon as a transaction is concluded on capsquare, the identity of the trading partners is disclosed to each other so as to enable the settlement. The settlement is made between the market participants only; neither the transmission system operator nor the capacity platform operator are involved. In order to facilitate settlements between market participants, the European Federation of Energy Traders (EFET) released a Gas Capacity Appendix   to the EFET Gas Master Agreement for the secondary gas capacity market on the Belgian and French transmission systems. This document incorporates the risk and credit management provisions for capacity products, as available on the platform, and provides for documentary cover of capacity trades in general.
Use of capacity
As soon as a transaction is concluded on capsquare, capacity exchange details are automatically uploaded by Fluxys or GRTgaz for checking and registration. If the seller has enough capacity, the checking and registration process with Fluxys or GRTgaz changes the transaction status on capsquare from ‘pending’ into ‘covered’, enabling the buyer to use his capacity through the applicable nomination process with Fluxys or GRTgaz.   During the platform opening hours, the indicative period for the checking process is 1 hour and a half after the conclusion of a transaction. GRTgaz market: through the capsquare transaction the buyer purchases the right to use the capacity. The seller still has the obligations relating to the transferred capacity. Fluxys market: the capsquare transaction results in an assignment with retained payment obligations.

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