Intercontinental Exchange Inc. (ICE) has warned European Union (EU) members that implementing a cap on natural gas prices without allowing markets time to adjust would cause more instability and possibly force it to reconsider trading in the Netherlands.

ICE has alerted EU members in a memo that proposals for an emergency mechanism to limit natural gas prices in the bloc could cause havoc in the market as traders rush to reevaluate their costs and risks, the exchange told NGI.

“If agreed, the market correction mechanism will be imposed on customers and the market infrastructure with no time for resilient testing and thorough risk management,” ICE said in a statement. “As a consequence, it is the responsibility of ICE as the market operator to consider all options if this...