EU plan to suspend power derivatives gets icy response
Proposal from energy ministers to ease collateral burdens blasted as “silly” and “terrible idea”
Energy market participants have labelled plans by the Council of the European Union to tackle runaway margin calls, including by suspending power derivatives trading, as “silly”.
The proposal to temporarily shut down power derivatives markets is contained in a discussion document from the Council’s energy subcommittee, and seen by Risk.net. Further details on how the suspension would work or how long it would be in place are unknown.
Energy firms fear that halting Europe’s power derivatives
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