Statement on the role of exchanges in energy markets

Published: - Updated:

Derivatives markets demonstrate every day that they are able to manage the extraordinary volatility and stress under which they are operating as a result of the ongoing energy crisis.

Exchanges have a suite of dynamic and configurable systems to manage periods of increased price volatility. Circuit breaker functionalities diminish the likelihood and extent of short-term price spikes or aberrant market moves. These are not price manipulation procedures, though, but rather essential safeguards to protect an orderly price discovery mechanism.