Increase in Clearing Thresholds for Commodity Derivatives

Summary

The European Parliament has approved an increase in the clearing threshold for OTC commodity derivatives from €3 billion to €4 billion to help energy companies manage liquidity during market volatility.
9 24.11.2022
Other
energy
finance
economy

Key points

  • The European Parliament has decided not to object to the new regulation regarding commodity derivative thresholds.
  • The regulation increases the clearing threshold for OTC commodity derivative positions from €3 billion to €4 billion.
  • This adjustment is a response to extreme market volatility and rising energy prices caused by Russia's aggression against Ukraine.
  • The measure aims to alleviate liquidity pressure on energy companies caused by high margin calls.
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