It has been agreed that the Market Correction Mechanism(MCM), which limits the price of wholesale gas (see here) together with other emergency measures, will be extended for another year. The announcement from the European Council can be found here.

The UK government has announced a local version of the Carbon Border Adjustment Mechanism (CBAM). More details can be found here. In addition two consultations have opened on emissions markets policy and the targeting of free allowances. More details on those can be found here.

The UK’s Financial Conduct Authority(FCA) has issued this update to the method to use in 2024 to determine whether the Ancillary Activity Exemption from the “full” MIFID II may be used by those in the UK trading commodity derivatives. It permits the use of the same method as last year, which considers that the “market size test” in the original MIFID II is no longer fitting due to a lack of market data. From 2025, a new method will be in force. That method is being discussed as part of the currently open consultation (see here).

This is likely to be the last post of 2023. We wish our readers a good holiday season and a Happy New Year. We look forward to providing the market with more updates in 2024!