Chinese demand last year in ’22 was down with the economy, for all intents and purposes, closed, and now it’s reopening. And for the first time last year in ’22, it’s the first time that natural gas and LNG physical supplies into China is likely to reduce since the early ’80s. So now with the reopening, what is that going to mean? And then you also have a move towards a cleaner environment, where natural gas being the cleanest of the fossil fuels continues to be in high demand. These are all macroeconomic environments that can be tradable. They are all things that people can forecast around. And we feel great about the position that we have with the business that we’ve built to help traders manage around that, and we continue to invest in new contracts in the LNG space, few basis contracts in Europe around that.
Now on price caps, I have mentioned on the last call, I went through a whole bunch of different issues that price caps can introduce around the difficulty you can create for people to manage and trade risk. ESMA has even come out recently with a comment that the unfortunate consequences of a price cap can be making it difficult for people to manage risk. Now for the aforementioned factors that I mentioned, the price of TTF has come way down. And the price cap right now is set at north of 3 times where TTF is trading. But that said, these can create issues for our market participants. So what we’ve decided to do is we’re launching a new TTF contract in the U.K., it’s a look-alike to the one we have in the Netherlands now, to provide customers a choice.
It’s important to point out that, that TTF contract is going to trade alongside another TTF contract that we already have in the U.K. called the TTF frontline. It’s a U.S. dollar-denominated contract that’s oftentimes used as a basis contract to trade LNG cargoes because those are also U.S. dollar-denominated. And all those contracts cleared in the U.K. already. So we already have a community of traders that are attached to us in the U.K. for that. And it’s a hedge. If they decide to use it, great. At a minimum for us, it provides us a free market price discovery mechanism to manage risk in our clearing house and to settle contracts.
Operator: Our next question comes from Daniel Fannon of Jefferies. Daniel, your line is now open. Please go ahead.
Daniel Fannon: Thanks, good morning. I wanted to follow up on the fixed income and data outlook as you think about ’23, the mid-single-digit growth. Can you talk about the inputs that you’re assuming for 2023, whether that’s pricing and where the growth is? And I know you’ve cited some headwinds in ’22. And maybe elaborate a little bit on that and maybe how you’re thinking about changes within those headwinds going forward.
Warren Gardiner: Dan, it’s Warren. Good question. So there’s not really much change in terms of our expectations and our targets as we head into next year. A couple of years ago, we outlined the growth algorithm for the data business, and that’s been pretty consistent for the last couple of years. So there’ll be a little bit of price we talked about in prior years, that being around a third of the growth. There will certainly be contributions from new customers, contributions from current customers purchasing more. And so I think it’s a pretty similar algorithm if you’re thinking about this year versus past years. I think when we’re thinking about 2023 specifically, look, the macro, those factors are a little bit difficult to predict.
