EC circuit breaker plan for energy futures under fire
Market participants say proposals could instead lead to more volatility in front-month contracts
The European Commission’s latest proposals to stabilise European energy markets have once again been met with opposition from energy traders and associations.
Futures exchanges already have so-called circuit breakers to prevent illegitimate trading, but the commission has proposed introducing one specifically for intraday price volatility on front-month energy contracts.
The EC hopes such a tool will alleviate large intraday price movements in electricity and gas futures contracts, enabling
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