The European Association of CCP Clearing Houses (EACH), together with a coalition spanning energy producers, suppliers, market operators, liquidity providers and financial institutions, sent a joint letter to the Presidents of the European Commission and European Council ahead of the 19–20 March European Summit opposing the Commission’s recently mentioned option of introducing a natural gas price cap in response to the geopolitical crisis in the Middle East. The co-signatories argue that a cap could weaken Europe’s energy security, disrupt energy market functioning and create financial stability risks without delivering sustainable consumer price relief. The letter warns that capping wholesale prices below global levels would undermine the credibility of market-based price signals and the European gas benchmark TTF, potentially diverting liquefied natural gas cargoes to other regions and damaging Europe’s standing as a trading partner. It also argues that a cap would impair the ability to hedge via energy derivatives by decoupling derivatives prices from underlying supply and demand conditions, prompting market participants to withdraw, reducing liquidity and increasing risk premia that ultimately raise costs across the value chain. The coalition cites the experience of 2022, noting that the temporary Market Correction Mechanism did not activate and that the European Central Bank, the European Securities and Markets Authority and the Agency for the Cooperation of Energy Regulators had highlighted risks associated with a gas price cap, including higher volatility, increased margin calls and a shift of trading to less regulated markets. The co-signatories urge the Commission to preserve market-based price formation and to design any consumer support measures in ways that are decoupled from price formation while safeguarding security of supply and hedging instruments, and they offer to engage further with EU institutions and Member States as preparations for the March Summit continue.
European Association of CCP Clearing Houses 2026-03-16
European Association of CCP Clearing Houses joins industry coalition warning EU leaders against a natural gas price cap
The European Association of CCP Clearing Houses and a coalition of energy and financial entities sent a joint letter to EU leaders opposing a proposed natural gas price cap, citing risks to energy security and market stability. They warn that capping prices could undermine market signals, disrupt hedging via energy derivatives, and increase costs across the value chain. The coalition advocates for preserving market-based price formation and designing consumer support measures that do not interfere with price signals.