Nasdaq Commodities said bank guarantee ban would hit 60% of participants
Eight European power exchanges have called
on the European Commission to drop a controversial plan to ban
the use of bank guarantees as collateral, arguing the proposal
will hurt the European energy market.
Europe plans to outlaw the acceptance of
bank guarantees as collateral by European power exchanges from
March next year but some of the region's top markets have
joined together to resist the move.
Letters from the exchanges to the European
Commission seen by FOW argue the ban "hinders
non-financials’ hedging of contracts beyond March
2016 and poses a huge risk that already well-developed regional
power markets disappear and the opportunity to further develop
and integrate the European energy market are significantly
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