acer and the implementation of remit
TRANSCRIPT
ACER and the implementation of REMIT
Volker Zuleger Seconded National Expert at ACER
Madrid, 23 March 2012
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Outline .REMIT scope and definitions
.Monitoring roles according to REMIT
.Data reporting and sharing
.Market oversight and cooperation
.The way ahead
3
The new energy market supervisory architecture after REMIT
Market
Abuse
Definitions
and
Prohibitions
Delegated and / or implementing acts by the Commission
ACER guidance on definitions
R E M I T
Market
Monitoring
Investigation
and
Enforcement
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Wholesale energy markets and products
.REMIT applies to trading in wholesale energy
products » Defined in Article 2(4) – contracts for gas and
electricity - commodity and transportation -
including derivatives
» Exclusion of financial instruments covered by
Market Abuse Directive from prohibitions on
market abuse established by REMIT
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Definitions (1)
.Definitions of inside information and market manipulation
based on Market Abuse Directive
» Coherent with current financial regulation
» But tailored to gas and electricity markets • E.g. Inside information according to Article 2(1) REMIT is
- information of a precise nature;
- which has not been made public;
- which relates, directly or indirectly, to one or more
wholesale energy products;
- and which, if it were made public, would be likely to
significantly affect the prices of those wholesale energy
products.
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Definitions (2)
For the purpose of the definition of inside information, Article 2(1) REMIT defines the notion of “information” as follows:
• information which is required to be made public in accordance
with Regulations (EC) No 714/2009 and (EC) 715/2009, including guidelines and network codes adopted pursuant to those Regulations;
• information relating to the capacity and use of facilities for production, storage, consumption or transmission of electricity or natural gas or related to the capacity and use of LNG facilities, including planned or unplanned unavailability of these facilities;
• information which is required to be disclosed in accordance with legal or regulatory provisions at Union or national level, market rules, and contracts or customs on the relevant wholesale energy market, insofar as this information is likely to have a significant effect on the prices of wholesale energy products; and
• other information that a reasonable market participant would be likely to use as part of the basis of its decision to enter into a transaction relating to, or to issue an order to trade in, a wholesale energy product.
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Definitions (3)
According to Article 2(2) and (3) REMIT, the
definition of market manipulation distinguishes
four elements of market manipulation: • market manipulation, or attempts thereof,
through false/misleading transactions,
• price positioning,
• transactions involving fictitious
devices/deception and
• dissemination of false and misleading
information.
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Obligations of market participants
.Obligation of market participants to publish inside
information „in an effective and timely manner“ according
to Article 4 REMIT, with possible exemptions provided
that either » such omission is not likely to mislead the public, that the market
participant is able to ensure the confidentiality of the information and
does not make decisions relating to trading in wholesale energy
products based on that decision,
» the market participant is a TSO fulfilling its tasks according to
Regulations (EC) No 714/2009 or 715/2009 or
» sensitive information relating to the protection of critical infrastructure is
delayed.
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Obligations of persons professionally arranging transactions
.Obligation of persons professionally arranging
transactions (e.g. organised markets)
» to monitor and
» to notify
potential breaches of market abuse prohibitions, Article
15 REMIT
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Prohibitions
.Prohibition on insider trading, Article 3 REMIT » Prohibition on trading based on inside information » Prohibition on recommending others to trade
based on inside information » Prohibition on disclosing inside information except
• to persons who owe a duty of confidentiality • where it is part of complete and efficient public
disclosure of the information. » Covering a loss from unplanned outage possible,
if supply obligation cannot be met otherwise .Prohibition on market manipulation and attempted
market manipulation, Article 5 REMIT
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Outline .REMIT scope and definitions
.Monitoring roles according to REMIT
.Data reporting and sharing
.Market oversight and cooperation
.The way ahead
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Monitoring roles according to REMIT ACER NRAs
Shall monitor all trading activities in wholesale energy products to detect and prevent trading based on inside information and market manipulation.
Shall cooperate at regional level and with the Agency in carrying out the monitoring of wholesale energy markets.
May also monitor trading activity in wholesale energy products at national level, cooperation with ACER and other NRAs at regional level→to detect trading based on inside information and market manipulation
Shall have the power, where, inter alia on the basis of initial assessments or analysis, it suspects that there has been a breach of REMIT
a) to request information from NRAs
b) to request to commence an investigation and to take appropriate action if applicable
c) establish and coordinate an investigatory group with concerned NRAs in case of cross-border impacts
Shall without delay inform the Agency in as specific a manner as possible where they have reasonable grounds to suspect that acts in breach of REMIT are being, or have been, carried out either in that MS or in another MS.
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ACER Approach to Market Monitoring
Data Acquisition Trade Data
Fundamental Data
Other Data
Automatic
Screening
to identify
“Anomalous
Events”
Monitoring
Methodology: “Anomalous
Events” definition
Preliminary
Analysis of
“Anomalous
Events”
Notification of
“Suspicious
Events” to
NRA(s)
NRAs
Coordination
(if needed)
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Outline .The way ahead
.Monitoring roles according to REMIT
.Data reporting and sharing
.Market oversight and cooperation
.The way ahead
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Data Reporting/Sharing & Data Transparency
Transaction Reporting of all wholesale energy transactions in relation to gas, power and
transportation (incl. derivatives/financial instruments)
Market Participants/
Third Party Exchanges Trade Repositories
Financial Market
Authorities Brokers
Reporting of transaction details and fundamental
data: ACER guidelines will spell out details
Data Sharing
National Energy
Market Regulators
Other relevant
Authorities
National Competition
Authorities
National Financial Market
Authorities
ACER
Trade database
Trade reporting or
matching system
ESMA DG COMP
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Outline .The way ahead
.Monitoring roles according to REMIT
.Data reporting and sharing
.Market oversight and cooperation
.The way ahead
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Market Oversight & Cooperation
ACER
Monitoring and initial analysis
to detect Market
Abuse under REMIT
Suspects Market
Abuse under REMIT
National Energy Regulators
Monitoring
and detailed
analysis
Suspect Market
Abuse under
REMIT
Investigation Measures to
remedy breach Penalties
National
Financial
Regulators
ESMA
Information
about Market
Abuse under
REMIT
Information about
Market Abuse and
about competition
case under REMIT
ACER triggers
investigation of Market
Abuse under REMIT
Investigatory Group:
Relevant National
Energy Regulators
to investigate Market Abuse
under REMIT
under ACER coordination
Information about
Market Abuse
under MAD
If Cross-border
impact
DG COMP
Information
about
competition
case
National
Competition
Authority
Information about
Market Abuse
under MAD
Information
about
competition
case
Information
about
competition
case
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Outline
.The way ahead
.Monitoring roles according to REMIT
.Data reporting and sharing
.Market oversight and cooperation
.The way ahead
19
Time line of REMIT’s entry into force
29.6.
2012
28.12.
2011
29.6.
2013
Winter
2013 /
2014
REMIT’s entry into force 20 days after publication in the OJ
• Prohibitions of insider dealing and market manipulation apply for market participants
• Obligation to publish inside information applies for market participants
Implementing act’s entry into force
(after comitology procedure)
ACER, in cooperation with NRAs, determines and publishes data
format for registration of market participants
6 months
?
Registration of energy trading firms
applies 3 months
Data collection and monitoring
by ACER and NRAs
6 months
NRA competences
implemented into national law
18 months
20
ACER milestones Mid 2013 Mid 2012.
2011
/
2012
2013
/
2014
2012
/
2013
Presumed
COM proposal
implementing acts
OJ
Publication
Entry into
force of REMIT
ACER determines and
publishes data format
for registration
ACER
recommendations on
record of transactions
etc (after public
consultation)
Expected start
of data
collection
through ACER
under REMIT
ACER’s 1st edition
of guidance on
REMIT definitions
Registration of
market participants
applies at the latest
ACER’s 2nd edition
of guidance on
REMIT definitions
Presumed
adoption of
implementing acts
after comitology
procedure
ACER’s 3rd edition
of guidance on
REMIT definitions
Monitoring Operate Design Plan Build
8.12. 28.12.
Further editions of ACER
guidance on REMIT definitions
if necessary
