Create a swap deal¶

This guide shows how to add and manage a Swap Deal using a step-by-step scenario. Follow the instructions to complete the process efficiently.

Step 1: Navigate to the Deal Management section¶

Log in to the nGenue application.
Click the Search icon and enter deal management in the search bar.
Select Deal management.
The next screen is divided into two sections: Deal query and Deal details. For detailed information and a list of fields available in both sections, refer to the navigating deal management screen article.

Step 2: Create a new swap deal¶

Click on Add Swap Deal or use the (Alt+F) keyboard shortcut.

You'll be navigated to the Deal Capture screen, where you need to fill in the details as mentioned in the table below:

Transaction information fields¶

Fields	Description
Instrument	Defines the type of deal being created. In this case, Physical NG (Natural Gas) is selected as it involves the physical delivery of natural gas. Selecting the correct instrument ensures the deal is processed under the appropriate market rules and contract terms.
Buy/sell	Specifies whether the deal is a buy (purchase of gas) or a sell (sale of gas). This is crucial for financial accounting and tracking gas flow. It also determines whether the company is acquiring gas from a supplier or selling it to an end user.
Start date and end date	Defines the duration of the deal. The start date indicates when the deal becomes active, and the end date marks its expiration. Setting the correct date range ensures that contractual obligations, pricing periods, and gas deliveries align correctly.
Initial volume	Specifies the total amount of natural gas committed under this deal. The volume is important for scheduling deliveries, ensuring compliance with contract terms, and forecasting supply needs. Underestimating or overestimating this value can impact financial and operational planning.
Volume period	Determines whether the initial volume is distributed on a daily or monthly basis. This selection affects billing calculations, scheduling logistics, and contract fulfillment. Daily volumes are used in short-term contracts, while monthly volumes are common in long-term agreements.
Pricing period	Specifies whether the price for the volume is set on a daily or monthly basis. This aligns with the pricing model agreed upon with the counterparty. Daily pricing is typically used for volatile markets, whereas monthly pricing provides stability.
Description	A brief summary or identifier for the deal. Helps users quickly understand the nature, purpose, or special conditions of the deal. Typically includes relevant details like deal type, counterparty, or special pricing conditions.
Trade date	The date when the deal was executed. Important for historical tracking, regulatory reporting, and risk assessment. Trade dates impact financial reporting, as well as compliance with market regulations.
Trader	The person or entity responsible for executing the deal. Ensures accountability and allows for tracking individual traders’ activity for audit and risk management purposes.
Unit of measure	Defines how the gas volume is measured (e.g., MMBtu, Therms, Dekatherms). Ensures accurate calculations for billing, transportation, and reporting. Different pipelines or markets may require specific units.
Btu rate	The heat content conversion factor for natural gas. Used to standardize gas pricing and volume conversions across different suppliers, pipelines, and contracts. Ensures accurate valuation of gas energy content.
Supply region	Identifies the geographical region from which the gas is sourced. This field is necessary for logistics, regulatory compliance, and pricing calculations, as gas costs vary by location due to transportation fees and supply availability.
Pricing type	Specifies whether pricing is deal-based or location-based: 1. Deal-Based Pricing: The price is set at the deal level, meaning the cost remains fixed for that particular deal regardless of location. 2. Location-Based Pricing: The price is determined by the pipeline location or market hub. This allows for variable pricing based on regional price fluctuations, market demand, or LDC rules.
Deal source	Specifies how the deal was created (e.g., manually entered, imported from an external system, or generated via an API). Helps in data validation and troubleshooting by tracking deal origins.
Deal status	Indicates the current lifecycle stage of the deal, such as Created, Confirmed, Partially Pathed, Canceled, Active, or Scheduled. Essential for workflow management and tracking deal progress.
Deal group type	Defines the category under which the deal falls (e.g., wholesale, retail, physical, financial). Helps in grouping and filtering deals based on their nature and purpose.
Group identifier	A unique grouping ID used to link related deals together. Helps in tracking multiple deals that are part of a larger transaction, such as parent-child deal structures.
Ext ref ID	An external reference identifier used when deals are imported from third-party trading systems or market platforms. Helps in cross-referencing deals with external data sources.
Int ref ID	An internal reference ID used within nGenue for tracking and linking deals across different modules. Helps in ensuring data consistency across deal management and financial reporting.
Date/time updated	The timestamp of the last modification made to the deal. Useful for audit tracking and version control, ensuring transparency in deal modifications.
Updated by	The user who last modified the deal. Ensures accountability by tracking changes made by different users. Useful in audits and internal reviews.
Date/time created	The timestamp when the deal was initially created. Used for tracking deal history, financial reporting, and auditing purposes.
Created by	The user who originally created the deal. Important for audit trails and compliance reporting, ensuring transparency in deal creation.
This deal is a template	If the checkbox is checked, the deal is saved as a template, allowing users to quickly create similar deals in the future. This is useful for standardized contract structures that are frequently reused.

Swap Type fields¶

Swing Swap: Swing swaps evolved from physical gas swaps that hedged fixed volumes. As demand became more variable due to weather, storage, and operational constraints, the market needed greater volume flexibility. Swing swaps meet this need by allowing volumes to vary within set limits while settling financially, preserving contract flexibility while managing both price and volume risk.
Basis Swap: Basis swaps evolved from standard swaps to manage location-based price risk. Instead of hedging prices at a single point, they lock in the price difference between two locations or indices, helping manage transportation constraints, regional imbalances, and pipeline flow changes.
Fixed-or-Flat Swap: Fixed-or-flat swaps evolved from traditional swaps to allow daily volume variability while preserving price certainty. Volumes can fluctuate during the period as long as the total remains fixed and settles at a preset price. This approach balances contract certainty with operational flexibility, making it an effective commodity risk management tool.
Index Swap: Index swaps evolved from traditional swaps, letting participants exchange payments based on a floating market index instead of a fixed price. They hedge broader market movements while preserving flexibility, making them a practical tool for managing natural gas price risk.
Float-for-Float Swap: Float-for-float swaps evolved from traditional swap deals to manage price differentials between two floating indices. Instead of fixing a price, both parties exchange payments based on variable market prices, allowing effective hedging of regional or index-based price risk while maintaining flexibility in volatile markets.

Counterparty configuration fields¶

Fields	Description
Counterparty	The entity (supplier or customer) with whom the deal is being made. This could be a wholesale supplier, marketer, or retail customer. Correct selection ensures accurate contract execution, billing, and risk management.
Legal entity	The registered business entity of the counterparty. Some counterparties operate under multiple legal entities, so selecting the correct one ensures compliance with contracts and legal requirements.
Business unit	The internal division of the company managing this deal. Different business units handle wholesale, retail, or trading operations. Proper selection ensures accounting and reporting accuracy.
Contact	The point of contact for the selected counterparty. This information is useful for communication regarding contract negotiations, scheduling, and issue resolution.
Agreement	The contract governing the deal. Specifies the terms and conditions, pricing structures, penalties, and obligations between the supplier and buyer. Ensures compliance and minimizes disputes.

Report groupings fields¶

Fields	Description
Legal entity	The company division responsible for the deal. This helps in financial reporting, compliance, and taxation.
Business unit	The internal business segment handling the transaction. Used for operational control and profit/loss allocation.
Portfolio/book	The portfolio or trading book where the deal is recorded. This is important for risk management and financial analysis.
Strategy	Categorizes the deal based on the company's market strategy, such as hedging, speculative trading, or customer supply. Helps in risk assessment and profitability tracking.

Confirmations-outgoing fields¶

Fields	Description
Date/Time Last Sent	Displays the most recent date and time when the deal confirmation was sent. This helps track the communication status between counterparties.
Last sent by	The username of the person who last sent the deal confirmation. This allows for accountability and tracking of confirmations.
Confirmation was sent	If checked, it indicates that the deal confirmation was successfully sent to the counterparty. This helps in verifying transaction status.

Deal settings fields¶

Fields	Description
Base load deal	If checked, the deal follows a base load contract, meaning a fixed quantity of gas is delivered daily/monthly. Used in long-term supply contracts for consistent gas flow.
Allow scheduling	If checked, pipeline scheduling is enabled. Required for deals where gas deliveries need pre-approval from the pipeline operator.
Child deal allocation	Allows gas allocation to sub-deals. Used for dividing a large contract into smaller units for different buyers or locations.
Is deal locked	If checked, prevents further modifications to the deal. Used for finalized contracts that shouldn't be altered after approval.
Triggers rights	If enabled, this setting allows triggering rights such as the ability to call upon specific contract options, like adjusting volumes, extending terms, or initiating optional deliveries, based on predefined conditions in the deal. It enables contract flexibility based on market conditions or counterparty agreements.
Evergreen deal	If checked, this enables the deal to function as an evergreen contract, which automatically renews at the end of its term unless explicitly terminated by either party. This is useful for ongoing supply arrangements without the need to re-negotiate terms each period.

Pipeline and Location fields¶

Fields	Description
Pipeline	The transportation system used to move the gas from the supplier to the end user. Selecting the correct pipeline ensures proper scheduling, tracking, and delivery coordination. Pipelines have capacity constraints and require scheduling approvals, making this a critical field.
Pipeline Location	A more specific designation within the pipeline system where the gas transaction occurs. This could be a receipt point (where gas enters the pipeline) or a delivery point (where gas is delivered to the end user). This ensures accurate transportation and delivery tracking.
Use meter ID	If checked, the meter# field is enabled, allowing users to specify a unique meter for tracking gas flow. This is used when tracking gas consumption at specific locations is required.
Meter#	The unique identifier for the meter measuring gas flow for this deal. This ensures that actual usage data is captured for accurate billing and reconciliation. Essential for tracking consumption at a facility level.

Deal confirmation fields¶

Fields	Description
Date/Time Last Confirmed	Displays the most recent date and time when the deal was confirmed. This ensures that the transaction is officially recorded.
Confirmed By	The name of the user who confirmed the deal. This is important for tracking who approved and finalized the transaction.
Deal Confirmation Number	A unique identifier assigned to each confirmed deal. The number increases sequentially with each confirmation, making it easy to track past confirmations.
Deal was Confirmed	If checked, it indicates the deal is officially confirmed. This helps ensure that the deal is finalized and cannot be modified without further action.
Is Deal Locked	(to be added)

Step 3: Saving the deal¶

Once all mandatory fields are filled, click on Save to finalize the deal. This ensures that all details are stored and processed correctly. You will navigate to the Deal summary tab where a concise overview of the deal is displayed.

Additional tabs in the Swap Deal capture screen¶

The Swap Deal Capture screen provides multiple tabs, each serving a specific function to manage, review, and analyze a Swap Deal effectively. Below is a detailed explanation of each tab and its functionality.

1.1 Swap Details tab¶

The Swap Details tab now includes Receipt Side and Pay Side tabs, letting users view and manage swap counterparties and transaction flows more clearly.

1.1.1 Receipt Side fields¶

In Swap Details, the Receipt Side specifies the details of gas delivery, including volume, pricing index, and use of a daily index, and references market publications to ensure accurate, industry-standard pricing.

1.1.2 Pay Side fields¶

The Pay Side tab lets users define payment obligations, indices, and settlement terms for accurate swap accounting.

Field	Description
Volume	Refers to the total quantity of gas being contracted for exchange.
UOM	UOM (Unit of Measure) specifies the standard unit used to quantify the traded gas.
Fixed or Floating	It indicates whether the contract price is set in advance or linked to a market reference
Fixed Price	It refers to a pre-determined price agreed for the gas, regardless of market fluctuations.
Use Daily Index	Use Daily Index means the contract price is tied to the daily market index for gas.
Index	It refers to a published market price used as a reference to determine the contract’s value.
Publication	It refers to the official release of market prices used to settle or reference the contract."
% of Index	It specifies that the contract price is calculated as a percentage of a reference market index."
Basis/Spread	It represents the price difference between a contract and a reference market index or between two locations.

1.2 Fees tab¶

This tab allows users to add and manage deal-related fees. | Field | Description | |-------------------|-------------| | Pay/receive type | Indicates whether the fee is a pay or receive type. | | Fee type | Includes broker fee, demand, sleeve, transfer, fuel loss, margin, nom mgmt, AMA opt, pipe fee, premium. | | Calc period | Specifies the calculation period for the fee (daily, monthly, or one-time). | | Calc method | Defines whether the fee is calculated based on volume or as a flat amount. | | Counterparty | The entity (supplier or customer) with whom the deal is being made. This could be a wholesale supplier, marketer, or retail customer | | Per unit price | Editable when volume-based calculation is selected; specifies price per unit volume. |

1.3 Comments tab¶

This tab allows users to add any additional remarks or important notes regarding the deal for reference and audit purposes.

1.4 Documents tab¶

This tab allows users to attach documents related to the deal. Click add new end user document to navigate to the store customer document screen. Users can provide document description, document category, and original file name for record keeping.

2.1 Deal Summary tab¶

This tab provides a comprehensive summary of the deal and helps monitor deal performance across different dimensions. It includes three view options:

Field	Description
Monthly volumes	Displays monthly volume usage for the selected year. Helps track consumption against contracted volumes on a month-by-month basis.
Projected cashflow	Shows estimated cash inflows and outflows over the deal’s duration based on pricing and consumption patterns. Useful for financial forecasting.
Mark to market	Reflects unrealized gain or loss by comparing the contracted deal price with current market prices. Helps assess financial exposure and market risk.

Example usage:

If you want to review how much gas volume was used in March 2025, select Monthly volumes, choose the year, and review the breakdown by month.
To check expected revenue or expense over the next few months, switch to Projected cashflow.
To assess your exposure to current market fluctuations, refer to Mark to market, which shows gains or losses based on market price changes.

2.2 Volumes by Period¶

This tab provides detailed distribution of deal volumes and available volumes. It contains the following sub-tabs:

Sub-tab	Description
Volume by period	Visible only if the volume source is selected as volume by period w/ tolerance. Displays volume distribution either by month or daily, based on pricing and volume period settings.
View by BAV	Displays volume details across stages: contractual quantity, planned, unscheduled, nominated, scheduled, estimated actual, actual, and best available volume (BAV).

Key features in View by BAV tab:

Date range: specify start and end dates to filter BAV data.
Load daily volumes: load volume data for the defined date range.
Recalculate dailies using dropdown options: contractual quantity (CQ), planned volumes (PV), or both CQ and PV.

2.3 Activity Log tab¶

The Deal activity log tab provides a complete audit trail of changes made to deals, including the user who made each change and the exact date and time it occurred.

Field	Description
Date range	Allows the user to specify start and end dates to filter activity logs.
Load deal activity log	Clicking this button displays a complete log of all modifications, with descriptions of what changes were made, who made them, and when, for the specified date range.
Deal Id	Unique identifier for the deal.
Instrument	Type of financial asset or commodity.
Trader	User who executed the deal.
Initial data	Original deal data before changes.
Data changed to	Updated data after modification.
Changed by	User who made the change.
Timestamp	Date and time of the change.
Comments	Notes or reasons for the update.

What's next¶

After the deal is created, the following post-deal activities are required to ensure proper execution, compliance, and tracking.

Pricing configuration
1. Setting up a physical pricing for the deal:
  1. Set up pricing components for transportation or delivery services.
  2. Configure any applicable surcharges or adjustments based on market conditions.
Nominations and scheduling
1. Submit nominations:
  1. Allocate volumes to the chosen pipeline paths or storage facilities as per the deal terms.
  2. Ensure nominations comply with pipeline rules and available capacity.
2. Schedule deliveries:
  1. Coordinate with counterparties and pipeline operators to set up the delivery timelines.
  2. Update and track the schedules within nGenue for real-time monitoring.

By following this procedure, deals are created, executed, and monitored efficiently in nGenue, with proper post-deal activities ensuring smooth operations and compliance.