European power and gas liquidity hit by Mifid II fears

Liquidity: not a rosy picture

Uncertainty over the impact of new European Union (EU) rules on energy traders is making it more difficult to transact in over-the-counter derivatives on longer-dated power and gas, say market participants.

"We've definitely seen a decrease in liquidity on the longer-dated tenors, across the European gas hubs and across the energy commodities, due in some part to regulatory uncertainty," says Riccardo Bortolotti, London-based head of energy corporates and commodity derivatives for Europe, the Mi