Regulatory Alerts2020-08-06
ESMA Opinion on Position Limits for CEGH VTP Natural Gas Futures
The European Securities and Markets Authority (ESMA) issued an opinion approving position limits set by the German Federal Financial Supervisory Authority (BaFin) for CEGH VTP natural gas futures traded on the European Energy Exchange. The approved limits establish a spot month cap of 13,710,035 MWh, representing 15% of deliverable supply, and an other months cap of 11,071,515 MWh, representing 35% of open interest. ESMA concluded that these limits comply with regulatory technical standards and MiFID II objectives, while recommending continued monitoring of trading patterns to prevent market abuse.
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