ICE May Pull Gas Market From EU Over Price Cap

Intercontinental Exchange (ICE) has warned it may pull its gas trading market out of the Netherlands if Brussels presses ahead with a plan to introduce a cap on TTF prices, according to the FT.

• ICE warned that the rapid imposition of a cap would give it no time for customers to adapt or for the market operator to test the system’s resilience and risk management systems, according to a memo sent to member states.
• A cap would likely force traders to immediately recalculate their prices, risks and costs, putting greater strain on the market, it said.
• “As a consequence, it is the responsibility of ICE as the market operator to consider all options if this mechanism is agreed, up to and including whether an effective market in the Netherlands is still viable,” the memo said.
• The EU energy ministers on Tuesday failed to agree on the proposed EU gas price cap. But several heads of states came forward to say they are confident a deal can be reached on Monday, when the next meeting is scheduled.