Daily (or Next-Day) Indexes

Published (Platts, NGI, Dow Jones, SNL, ICE, NGW) price indices for commodities (gas or electricity) to be delivered the next day based on transactions occurring between certain hours during the current day. Some market participants choose not to transact at a fixed price during the day for next-day delivery because prices can vary throughout the day. Instead, they choose to buy or sell at an index compiled by a publisher (usually a volume-weighted average of all transactions within specified hours), capturing a representative market price.