TTF Regulator Warns Against Price Cap

The Dutch regulator which oversees the TTF, has cautioned that attempts to impose a cap on futures prices could lead to issues like shortages.

• The agency is critical of "the European tendency toward a price cap or very strict volatility rules,", adding "The market is functioning adequately and with interventions you never know what you may get, the consequences may be worse than you expect."
• The European Commission announced in October it would consider setting a ‘dynamic’ price cap on TTF futures. 15 countries are in favour but the most vocal pushback has come from the Netherlands and Germany who have stated they believe it would make Europe uncompetitive.