The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has submitted its response to the European Commission (Commission) regarding the current level of margins and of excessive volatility in energy derivatives markets.
In its letter, ESMA sets out its high-level assessment concerning the areas where the Commission requested input:
- Measures to limit excessive volatility (circuit breakers)
- CCP margins and collateral
ESMA also makes a number of further suggestions in the…