Research European Commodity Market Regulations - Part 2 | Page 11

European Energy Market Regulations – Survey Results Impacts on Ability to Trade The impacts of the regulations are seen by the respondents to the survey to be largely in increased costs related to technology and support, with 70% of the respondents citing this as a concern. Reduction in OTC transactions and increased costs due to margin requirements were both cited by a third of the respondents. Around 15% of the respondents felt there would be no impact (these were predominantly European no-EU entities) and one respondent believes that they will need to divest part of their business to keep compliance costs down. Figure 8: Impacts on Ability to Trade Will force us to divest a portion of our business to reduce the regulatory burden No impact Increase cost of trading due to higher margin requirements Reduce the number of OTC transactions that we do Increase our costs related to technology and support 0 0.1 0.2 0.3 © Commodity Technology Advisory LLC and ETR Advisory Ltd, 2013, All Rights Reserved. 0.4 0.5 0.6 0.7 0.8 December, 2013 11