Regulatory Alerts2022-12-20
ESMA Opinion on position limits on ICE Endex Dutch TTF Gas contracts
The European Securities and Markets Authority (ESMA) issued an opinion assessing the compatibility of position limits proposed by the Netherlands Authority for the Financial Markets (AFM) for ICE Endex Dutch TTF Gas contracts with MiFID II and RTS 21a. ESMA approved the AFM's calculation methodology, which sets the spot month limit at 10% of deliverable supply (17,110,110 MWh) and the other months' limit at 10% of open interest (101,332,061 MWh), while endorsing adjustments for geopolitical disruptions and market constraints. The Authority concluded that these limits are consistent with the objectives of preventing market abuse and supporting orderly pricing and settlement conditions.
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