Erscheinung:25.06.2024, Stand:updated on 02.07.2024 | Topic OTC derivatives TTF-Gas Future: Dutch Financial Market Authority launches new Position Limit
From 1 July 2024 the Dutch Authority for the Financial Markets (AFM) will apply a position limit to the TTF-natural-gas-Future traded at the Leipzig based European Energy Exchange. Due to its high liquidity the future contract has been classified as significant commodity derivative under the directive on markets in financial instruments (MiFID).
Starting 01 July 2024, AFM will act as Central Competent Authority (CCA), thereby applying its position limit to natural gas futures contracts traded at the European Energy Exchange (EEX) and economically equivalent OTC traded derivatives contracts. This is because the TTF gas future as traded at ICE Endex in Amsterdam is based on the same underlying, shares the same characteristics and is traded in even higher volumes.
Moreover, the AFM will supervise the position limit and examine applications for exemptions. The relevant individual position for the application of the position limit will be the aggregated net positon of trades at EEX, ICE Endex and OTC trades in economically equivalent commodity derivatives.
AFM has determined the spot month and other months position limit by reference to open interest data of both ICE Endex and EEX and after having consulted BaFin. Following this, the Dutch financial markets authority has informed the European Securities and Markets Authority (ESMA) about the new position limit. Meanwhile, ESMA has approved of the position limit. Thus, the new position limit can be applied to the EEX contract.
For further information, particularly the exact position limit figures as set by AFM, please check AFM’s website.
