Additional volatility in the global natural gas market set off by Russia’s invasion of Ukraine earlier this year is driving liquidity in global benchmarks that continues to set new highs, particularly in Europe, according to the Intercontinental Exchange (ICE). 

Open interest in Italian Punto di Scambio Virtuale (PSV) gas futures was up 169% year/year from January to April. Open interest in German Trading Hub Europe (THE) futures was up 100% year/year during the same time. Open interest is the number of outstanding derivative contracts that serves as indication of trading activity.

Russia’s February invasion of Ukraine has jeopardized European natural gas supplies and prompted the continent to diversify supplies, which has driven volatility and created even stronger needs to...