EFP mechanism on ICE futures
Can someby explain me in detail a full EFP transaction?
Let's make an example using TFM/TTF futures (but could apply also to Brent). "X" has a short position in sep26 with TFM ICE futures while "Y" is interested in receiving TTF gas in sep26.
If X wants to deliver TTF nominees to Y instead of ICE, both parties should register an EFP at ICE, where Y sells TFM future to X and X buys TFM future from Y. After that, there will be the OTC leg where X will sell the gas to Y.
According to this, X has nothing to deliver at ICE since its position is cleared (-TFM sep26 + TFM sep26), but what happens to Y?
Does it have to do something at ICE or just buy the TTF OTC from X? I feel like there are 3 legs inside the ICE environment where X net is 0 and Y has a future leg open.