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Plans of mice and men

The American group behind the main European gas trading market is considering relocating it from Amsterdam to London in response to the European Union’s proposed gas price cap.

Intercontinental Exchange warned Brussels that it would examine whether its market for the Dutch TTF (title transfer facility) gas price was “still viable” in the Netherlands if the EU proceeded with the cap. It is understood to be considering moving the market from its Amsterdam-based Endex exchange, where most gas futures trading for the crucial TTF contract takes place at present, potentially to its London-based ICE Futures Europe exchange.

ICE has said already that the EU’s price cap could raise margin requirements on energy companies by up to $47 billion and it said it was “deeply concerned about whether the market can cope with meeting margin calls of this size”.

The price cap would apply on trading carried out within the EU’s jurisdiction, so analysts say its imposition could trigger a shift in TTF trading to other exchanges based outside the bloc, such as those operated by ICE’s rivals. Rather than lose trade, ICE also could relocate its TTF market to an exchange where the cap would not apply.


3 thoughts on “Plans of mice and men”

  1. “Plans Of Mice And Men” Aaaaargh, no.

    It’s “schemes of mice and men” – because the chap had a poet’s ear for speech not an American CEO’s.

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