The Financial Times has confirmed that European traders will suffer an estimated $33 billion in losses if the EU adopts a plan to impose a gas price ceiling.
The newspaper, citing the London Stock Exchange (ICE), indicated that producers and traders who rely on the Dutch gas hub TTF could face an 80% increase in insurance premiums to secure their trades. She stressed that such a large increase could “destabilize the market.”
The London Stock Exchange (ICE) has warned that if Brussels’ plan to cut European gas prices comes to fruition, energy traders will have to pay an additional $33 billion in cap payments.
She noted that the exchange’s $33 billion valuation covers both initial margin, which protects counterparties from default risks, and variation margin, which covers daily fluctuations in market prices.