The extension of the ‘market correction mechanism’ (MCM) capping gas prices to other derivatives linked to virtual trading points (VTPs) in the European Union shall apply from Monday 1 May, according to the legislative proposal unveiled by the European Commission on Friday 31 March.
The EU institution thus suggests capping prices on VTPs, which are non-physical trading exchanges that serve as a trading platform for gas deliveries. The MCM will apply to any derivative instrument traded on a regulated market whose underlying asset is a gas transaction in any VTP in the EU.
This Regulation does not concern the Title Transfer Facility (TTF), which is covered by another Regulation (see EUROPE 13112/28).
The Regulation will not apply to contracts for other derivatives or to the purchase and sale of derivatives linked to other VTPs concluded before the date on which the Regulation comes into force.
To consult the Regulation: https://aeur.eu/f/66j (Original version in French by Anne Damiani)