ESMA finds natural gas futures markets functioned appropriately during the August 2022 price surge

Summary:

The European Securities and Markets Authority (ESMA) has published a study on the surge in natural gas futures prices in European markets in August 2022. Despite record high prices, the study found that markets functioned normally, with no signs of reduced liquidity, and CCP margins rose and fell in line with prices and volatility. The study suggests that strong demand from end-clients, particularly those looking to replenish winter reserves, drove prices, given the sharp drop in Russian pipeline supplies.