{"id":1772020,"date":"2022-12-12T06:03:11","date_gmt":"2022-12-12T11:03:11","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1772020"},"modified":"2022-12-12T08:03:41","modified_gmt":"2022-12-12T13:03:41","slug":"european-central-bank-eus-gas-price-cap-scheme-could-backfire-raise-volatility","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/european-central-bank-eus-gas-price-cap-scheme-could-backfire-raise-volatility\/","title":{"rendered":"European Central Bank: EU\u2019s Gas Price Cap Scheme Could Backfire, Raise Volatility"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Feuropean-central-bank-eus-gas-price-cap-scheme-could-backfire-raise-volatility%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1772020&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>FRANKFURT\u2014Proposed European Union rules aimed at tempering natural gas price spikes may actually jeopardize financial stability and need to be redesigned, the European Central Bank said on Thursday in a formal opinion.<\/p>\n<p>The <a href=\"https:\/\/www.theepochtimes.com\/t-eu\">EU<\/a> proposed a \u201cmarket correction mechanism\u201d last month aimed at tempering natural gas prices and market volatility after a spike in <a href=\"https:\/\/www.theepochtimes.com\/t-energy\">energy<\/a> costs pushed inflation to record highs and raised financial market stress in energy derivatives trading.<\/p>\n<p>The <a href=\"https:\/\/www.theepochtimes.com\/t-ecb\">ECB<\/a>, a guardian of the bloc\u2019s financial stability, acknowledged that the goal was to moderate extreme price levels and volatility, but warned that the rules could achieve the exact opposite.<\/p>\n<figure id=\"attachment_4914099\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/12\/09\/Gas-cylinders-1200x843.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-4914099\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/12\/Gas-cylinders-600x421-1.jpg\" alt=\"Gas cylinders\" width=\"600\" height=\"421\"   style=\"display:none\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4914099\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/12\/Gas-cylinders-600x421-1.jpg\" alt=\"Gas cylinders\" width=\"600\" height=\"421\" \/><\/noscript><\/figcaption><\/a> <a href=\"https:\/\/www.theepochtimes.com\/t-gas\">Gas<\/a> cylinders are stored at at a gas vendor shop in Sint-Pieters-Leeuw, Belgium, on Nov. 24, 2022. (Yves Herman\/Reuters)<\/figure>\n<p>\u201cThe ECB considers that the current design of the proposed market correction mechanism may, in some circumstances, jeopardize financial stability in the euro area,\u201d the ECB said in an opinion signed by President Christine Lagarde.<\/p>\n<p>\u201cThe mechanism\u2019s current design may increase volatility and related margin calls, challenge central counterparties\u2019 ability to manage financial risks, and may also incentivize migration from trading venues to the non-centrally cleared over-the-counter market,\u201d it added.<\/p>\n<p>The ECB also asked the European Commission to curb its role in the process of activating and ending the price mechanism as the current proposal may encroach on its independence and confer a new task on the bank without a necessary EU Treaty change, all the while other agencies may be better suited for the role.<\/p>\n<p>Instead, the EU should merely have the \u201cpossibility\u201d to seek the ECB\u2019s advice, the ECB added.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-reuters\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/reuters-logo-.jpg\" alt=\"Reuters\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>FRANKFURT\u2014Proposed European Union rules aimed at tempering natural gas price spikes may actually jeopardize financial stability and need to be redesigned, the European Central Bank said on Thursday in a<\/p>\n","protected":false},"author":1,"featured_media":1772023,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[7461,5373,5458,8021,3856,8019,5075,7536,7145,5283,3819,8020,8022],"class_list":["post-1772020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-backfire","tag-bank","tag-bongino","tag-cap","tag-central","tag-eus","tag-european","tag-gas","tag-price","tag-raise","tag-report","tag-scheme","tag-volatility"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1772020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1772020"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1772020\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1772023"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1772020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1772020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1772020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}