ESMA finds adequate setup of measures to reduce volatility in trading of energy derivatives

ESMA finds adequate setup of measures to reduce volatility in trading of energy derivatives

Metadata
Provider: 
ESMAESMA
URL: 
https://www.esma.europa.eu/press-news/esma-news/esma-finds-adequate-setup-measures-reduce-volatility-trading-energyhttps://www.esma.europa.eu/press-news/esma-news/esma-finds-adequate-setup-measures-reduce-volatility-trading-energy
Retrieved on: 
Saturday, July 1, 2023
Information
Tags: 
European Securities and Markets Authority, II, Council Implementing Regulation (EU) No. 282/2011, ESMA, Union, Markets in Financial Instruments Directive 2014, IVM, IVMS, Council, Regulation, Calibration, Cryptocurrency, EU
Summary
Key Points: 
  • ESMA finds adequate setup of measures to reduce volatility in trading of energy derivatives
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published its Report on the implementation and functioning of the Intra-day Volatility Management Mechanism (IVM).
  • The IVM aims at limiting extreme volatility of prices in energy derivatives markets within one day.
  • ESMA finds them adequately calibrated, with the caveat of the assessment having been done in a period with no evidence of protracted volatility episodes affecting energy commodity derivatives trading.
  • ESMA will continue requesting updates on the implemented IVMs from trading venues on a quarterly basis as per the Regulation and monitoring developments in the trading of energy commodity derivatives.
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