Our business has been built on a forensic understanding of how to track how markets behave; how this influences the rules & regulations that govern energy trading; and how this in turn affects its participants & the trading strategies they implement – especially our users.

We build our insight and understanding through an unparalleled quality and quantity of data that includes:

  • User data collected through our daily interactions with cleared and uncleared trading venues.
  • Bilateral data collected via bilateral trades executed directly between counterparties without involving a trading venue.
  • Market data sourced through 3rd parties that plugs any gaps

We call this the Equias Premium Dataset – and it forms the cornerstone of our trade monitoring and market insight services that we provide to help our users trade more confidently and effectively.

Introducing the Liquidity Cube

Liquid markets are the ideal scenario for all stakeholders, because market liquidity attracts more liquidity. However, not all European energy markets are liquid – and of those that are, some are not liquid all the time.

Just as market liquidity attracts more liquidity, so the opposite is true. A lack of liquidity acts as an effective barrier to market participation; limiting the effectiveness of the European energy market in some locations.

For our users and the broader market, it makes sense to stimulate and nurture liquidity throughout the entire European market. This is best achieved by trading when markets are at their most liquid – and therefore equitable – thus building a virtuous circle, where market liquidity attracts more liquidity. The big question is…how do you know which markets are most liquid at any given time?

For some answers, we formed an industry-wide market data analysis group the SDSIG. The starting point was to define liquidity in the context of traded energy markets; which resulted in the identification of nine key attributes (starting with time-to-fill).

From here, the Equias team created a unique model that we call The Liquidity Cube, in order to help our 20 SDSIG members literally compare and contrast various aspects of how markets behave – and provide a uniquely multi-dimensional view of their activity.

If you’d like to join the SDSIG or want to know more about our findings, contact us.

Or view our spot market white paper.