ICE Announces Plans to Implement EU Market Correction Mechanism and Related Price Cap on TTF Natural Gas
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, today announced how it intends to implement the European Union’s Market Correction Mechanism Regulation (MCM Regulation) and related price cap on TTF natural gas derivatives, in time for entry into force of the regulation.
- Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, today announced how it intends to implement the European Union’s Market Correction Mechanism Regulation (MCM Regulation) and related price cap on TTF natural gas derivatives, in time for entry into force of the regulation.
- For details on the intended Rulebook changes and related guidance in respect of the MCM Regulation, please see https://www.theice.com/endex/circulars .
- This may mean that settlement prices of TTF futures and options may deviate from the price cap when it is not reflecting fair market value.
- This will provide market participants with optionality in the event the natural gas price rises, and the risk of the MCM price cap being triggered increases.