Regulatory Alerts2024-07-01
ESMA Opinion on position limits for ICE Endex and EEX Dutch TTF Gas contracts
The European Securities and Markets Authority (ESMA) issued an opinion assessing the Dutch Authority for the Financial Markets' (AFM) proposed position limits for Dutch Title Transfer Facility (TTF) natural gas futures and options traded on ICE Endex and EEX. ESMA confirmed that the AFM, acting as the central competent authority, correctly applied the methodology in RTS 21a to set a spot month limit of 15% of deliverable supply and an other months limit of 12.5% of open interest. The regulator concluded that these limits are consistent with MiFID II objectives, effectively preventing market abuse while maintaining orderly pricing and sufficient liquidity for the European natural gas market.
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