Commission Implementing Regulation (EU) 2023/736 of 31 March 2023 on the definition of the technical details of the application of the market correction mechanism to derivatives linked to virtual trading points in the Union other than the TTF

Commission Implementing Regulation (EU) 2023/736 as regards the technical details for the Market Correction Mechanism (MCM) to be applied for derivatives linked to other virtual trading points (VTPs) was published in the Official Journal (OJ) of the EU.
In detail, the Implementing Regulation specifies that – in accordance with Article 9 of the Market Correction Mechanism Regulation (Council Regulation (EU) 2022/2578) – the MCM shall apply to derivatives linked to other virtual trading points as well, including front-month derivatives and front-year derivatives.
The Implementing Regulation further defines that the same market correction criteria apply as for the trading of Title Transfer Facility (TTF) derivatives as specified in Article 4 of the MCM Regulation, which sets out limits on the settlement price of TTF derivatives per MegaWatthour (MWh). Additionally, the same bidding limits shall apply following the occurrence of a MCM event.
Finally, the Implementing Regulation specifies some exemption from the application of the regulation, namely for – as quoted:
1. contracts for derivatives linked to other VTPs concluded before the date of entry into force of this Regulation;
2. buying and selling of derivatives linked to other VTPs in order to offset or reduce contracts for derivatives linked to other VTPs concluded before the date of entry into force of this Regulation;
3. buying and selling of contracts for derivatives linked to other VTP as part of a CCP default management procedure, including OTC trades registered in the regulated market for clearing purposes.