The regulatory framework governing the Spanish natural gas organized wholesale market was approved in 2015 and completed in 2016.
The start of operations occurred on 16 December 2015, when the market operator created an electronic platform for negotiation of transactions. There are currently 47 companies qualified as market agents, and the level of transactions has been increasing.

Objective
The main target of the organized wholesale market consists of collaborating in the creation of a gas hub in Spain and increasing the pricing transparency in the gas sector. Notwithstanding, the participation in the organized wholesale market is not mandatory (i.e. agents can still carry out transactions aside from the organised wholesale market).

The aim is to integrate the Spanish and Portuguese systems within the same organized wholesale market, although the international treaty between both countries is pending.

Market operator
The management of the organized wholesale market corresponds to the market operator. The private company MIBGAS, S.A. has been appointed by law to carry out that role.

The market operator must observe the principles of transparency, objectivity, non-discrimination and independence. To assure so, the market operator is subject to certain restrictions regarding its shareholding.

Market agents
In order to become a market agent, it is necessary to obtain the corresponding qualification and enter into the adhesion agreement to the market rules, being necessary to perform some guarantees.

Transactions in the market
The organised wholesale market comprises sales and purchases of natural gas in the short term (i.e., products to be settled between the day when the transaction occurs and, at least, the last day of the coming month) with physical settlement in the Virtual Balance Point (i.e., the natural gas within the transmission and distribution system).

Operation of the market
The market operator provides an electronic platform in order the transactions can be performed. The transactions may be carried out through auctions or through continuous market structures.

The market operator is in charge of checking the offers submitted by the agents. Once the offers are matched, the market. Operator shall notify the relevant agents their respective payment obligations and rights to receive payment.

In the event of any breach, the market operator is entitled to call the guarantees.

In order to foster the transactions, the entity Gunvor has been appointed as market maker for certain products during the first semester of 2017.

Market rules and resolutions
The market rules and resolutions govern the operation of the organised wholesale market, including the rights and obligations of the agents, tasks of the market operator and market makers, negotiating sessions, specifications of products, billing procedure, and guarantees.

Market agents have the right to submit queries and claims. If they disagree with the operation of the organised wholesale market or the management of guarantees, they can file a claim with the National Commission of Markets and Competition (NCMC). Other type of claims and disputes will be solved in an arbitration procedure before the NCMC.