The main purpose of this report is to capture the impact of the MCM following its adoption by the Council and to identify potential effects related to financial and energy markets and security of supply.
ACER and ESMA were tasked with publishing two preliminary reports, concerning the adoption of the MCM and focusing on the developments in the financial and energy markets and on security of supply by 23 January 2023, and a final report by 1 March 2023.
This ACER Market Correction Mechanism Effects Assessment Report of 1 March 2023 offers a more comprehensive outlook of the effects prompted by the MCM, than the preliminary data report. It also aims to assist the European Commission on specific tasks pursuant to Articles 8 and 9(2) of the MCM Regulation, namely assessing:
- the technical aspects of the potential extension of the MCM to derivatives traded at EU Virtual Trading Points (‘VTPs’) other than the Dutch Title Transfer Facility (‘TTF’) as of 31 March 20233;
- the functioning of elements of the MCM, to the extent that the short application period of the mechanism (since December 2022) allows.
Given their different legal mandates, ACER and ESMA deliver separate reports in relation to the MCM. ACER focuses on energy market developments and security of energy supply, while ESMA focuses on the impacts in the derivatives market and hedging, clearing and risk management.