The report describes the structure and main participants in the EU natural gas derivative market. It focuses on market indicators aimed at assessing the potential effects of the adoption of the MCM. Based on available data at this point in time, ESMA has not identified significant impacts resulting from the adoption of the MCM Regulation but notes that this should not be interpreted as the MCM not having any effects on financial markets in the future.

The report identifies the potential consequences of the MCM on market participants’ trading behaviour and the effect it may have on the ability of market participants to effectively manage their risks. In that regard, it includes a more qualitative analysis of the possible risks to CCP risk management and the potential impact on the clearing of derivatives.

Background

On 22 December 2022, the European Council adopted the EU Regulation 2022/2578 establishing an MCM. ESMA and ACER, the Agency for the Cooperation of Energy Regulators, were required to publish a preliminary data report concerning the adoption of the MCM by 23 January 2023.

ESMA and ACER have been closely cooperating when developing their respective reports to ensure that all relevant and potential developments in financial and energy markets were assessed and to limit overlaps. ACER also published their report today.