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EMIR clearing threshold change, a webinar and a regulation on a market correction mechanism

Yesterday an amending regulation was published in the Official Journal of the European Union changing the EMIR clearing threshold for commodity derivatives to 4bn EUR from 3bn EUR. It can be found here. It follows a lengthy period of discussion and a report published by ESMA recommending the change (see here). The other recommendations in the report have not yet been addressed. The change was sought, initially due to certain Regulated Markets in the UK not being recognised as equivalent by the EU following Brexit, and more recently due to high prices.

A webinar on the impact of the changes due to EMIR REFIT in reporting will take place tomorrow 1st December. Registration can be found here. See here for details of EMIR REFIT.

Last week the European Commission published this legislative proposal which aims to provide a “correction mechanism” for TTF front month contracts. The mechanism would be activated if:

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(a) the front-month TTF derivative settlement price exceeds EUR 275 for two week(s) and
(b) the TTF European Gas Spot Index as published by the European Energy Exchange (EEX) is EUR 58 higher than the reference price during the last 10 trading days before the end of the referenced period.

This follows the publication of the previous proposal here.