- A temporary brake on gas and electricity derivatives when prices spike could improve how energy markets operate, the European Union’s securities watchdog proposed on Thursday (22 September), along with more fundamental changes over time.
- Energy firms sell their output using derivatives markets, requiring them to post “margin” in the form of cash, in practice, to cover positions at clearing houses in case they turn sour.
- ESMA signalled a need for regulators to have a much broader grip on commodity markets to not just include exchanges, but also over-the-counter or off-exchange trading, and transactions in the physical market.
EU financial watchdog proposes emergency brake for energy markets
