ICE Threat on European Natural Gas Shows Big Intervention Risks for January 1 Proposal: CarrZee + FT (1)

CarrZee: ICE’s reaction (see below) will probably slow lawmaking on gas-cap proposal.

There seems to be little prospect of relief for households. Blunt market interventions can damage traders’ willingness to trade.

Front-month (Jan. 2023) contract up 2.3% to €135/MWh; trades in range of €131-€136: ICE


Source: See doc below

Unedited from FT:

ICE threatens to withdraw gas trading from EU if Brussels imposes price cap

Alice Hancock and Philip Stafford in London

Intercontinental Exchange, the US operator, has warned it may pull its gas trading market out of the EU if Brussels presses ahead with a plan to introduce a cap on prices.

EU ministers have been haggling over the level of a gas price cap for the past month following a European Commission proposal that suggested a ceiling on the contracts that settle up to three months hence on the Dutch Title Transfer Facility, Europe’s benchmark index.

Discussions to resolve the mechanism and cap level have been divisive as the bloc tries to respond to its broadening energy crisis. On Tuesday, ministers failed for a second time to find a resolution to the debate and have delayed approval of the measure to their final meeting of the year next Monday.

… “it is the responsibility of ICE as the market operator to consider all options if this mechanism is agreed, up to and including whether an effective market in the Netherlands is still viable,” FT said, citing ICE memo.

Documents and Tweets below

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