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In order to improve the liquidity of products traded on the market, GME, pursuant to Article 27, paragraph 27.1, of the Rules,
set forth the Market Making activity.
Participants of the Gas Market (MGAS), interested in carrying out this activity, shall submit to GME a specific request in
accordance with the terms and conditions set forth in the Technical Rule 18 MGAS.
In particular, any MGAS participant which complies with the conditions set forth in the above-mentioned Technical Rule may apply
for the Market Making activity, by
submitting the request for carrying out the Market making activity, the ad hoc
Agreement with GME
and the product selection form.
All the above documentation must be sent to GME in original by means of a registered letter with acknowledgement of receipt.
By means of a special communication from GME, which is to be sent by registered letter with acknowledgement of receipt within 15
calendar days immediately following the receipt of the above mentioned documentation, the requesting participant is granted the
opportunity to carry out the Market Making activity, as a Liquidity Provider (LP), under the terms of the above mentioned Technical
Rule.
The carrying out of Market Making activity on the MGAS involves the commitment, but not the obligation, by the participants which
have signed with GME the Participation Agreement for carrying out the Market Making activity to support, as LPs, the liquidity of
specific products traded on the market, by displaying bids/offers or the execution of related transactions.
The simultaneous presence of a number of participants qualified LP between a minimum of 3 (three) and a maximum of 7 (seven)
represents a mandatory and necessary requirement for the activation and maintenance of the Market Making activity on the MGAS.
The Market Making activity is provided on the MGP-GAS with reference to the trading of the following products:.
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“Daily product” relating to gas day G+1 and, in the cases provided for by
Technical Rule 18 MGAS, to
gas days G+2 and G + 3;
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“Weekend product”: relating to the gas days of Saturday and Sunday.
GME may add or remove products for which the Market Making activity can be carried out.
The commitment to carry out the Market Making activity shall be considered fulfilled if the LP participant, during a calendar month and
a number of valid sessions equal to at least 75 % of the number of market sessions taking place on the working days of that month, has met
all the conditions envisaged for the procedures through which it is possible to fulfill that commitment as defined in the Technical Rule 18 MGAS.
GME will grant the following fees to LP participants which have carried the Market Making activity in accordance with the terms, methods
and conditions set forth in the above mentioned Technical Rule for a calendar month:
Fee per MWh traded:
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a fee of 0.01 €/MWh for each MWh traded on the MGP-GAS for the products for which market making activities are expected to be
carried out in any session of the calendar month starting from the effective date of the service, including those on non-working
days, as well as outside the time slot 2:00 pm - 6:00 pm.
Within the 6th working day of the month following the last day of the invoicing period, identified in each calendar month, GME receives from
the LP one or more invoices with the identification of the fixed fee and the variable fee, including VAT, where chargeable.
Within the 8th working day of the month following the last day of the invoicing period, GME notifies the Liquidity Provider's net position
(creditor or debtor) on the basis of the offsetting of the amounts, including VAT, where chargeable, of the invoices by GME and LP according to
the terms and conditions defined in the Technical Rule 16 MGAS as subsequently amended and integrated.
Payments, both by GME to LP participants and those by LP participants to GME, are made through SEPA Credit Transfer with Priority or equivalent
procedures by the 16th working day, with value date on the same day, following the notification by GME of the result of the net position.
For more information on invoicing methods and timing and payment of the fees granted to the LP, please refer to the Technical Rule16 MGAS as
subsequently amended and integrated.
GME is included among the parties for which the "split payment" VAT system applies, pursuant to Article 17-ter, paragraph 1bis of Decree of
the President of the Republic no. 633. of 26 October 1972.
Therefore, participants established in Italy will have to issue an invoice with the application of this system for the provision of services
made to GME, for which the latter is not liable for the payment of the tax.
LP fees - VAT codes
AX = purchase subject to VAT at the standard rate - Split payment
A7 = EU purchase not subject to VAT as per art. 44, Directive 2006/112/EC - EU reverse charge
A8 = non-EU purchase not subject to VAT as per art. 44, Directive 2006/112/EC - non EU reverse charge
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