Regulatory Alerts2020-08-06
Opinion on position limits on ICE Endex German NCG gas contracts
European Securities and Markets Authority (ESMA) approved the Netherlands Authority for the Financial Markets (AFM) proposed bespoke position limits for ICE Endex German NCG Gas futures and options contracts. The regulation establishes a spot month limit at 10% of deliverable supply (19,767,000 MWh) and an other months' limit at 50% of open interest (2,096,643 MWh), calculated in accordance with RTS 21 and MiFID II. ESMA mandates that the AFM closely monitor trading patterns and periodically review the spot month limit to prevent market abuse while preserving liquidity for this developing market.
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