you're reading...

Interesting article on wash trades

See here for an interesting post on the Broadpeak Partners web site on the topic of wash trades. The post examines the updated version of ICE’s wash trade FAQ, which looks at the prohibition on wash trades in the US.

In Europe REMIT, which outlaws wash trades in the wholesale gas and power markets, is already in force. April 7th will see the final deadline for reporting trade data to ACER, who will shortly afterwards be able to monitor the market for suspicious activity, including wash trades.

July 2016 will also see the introduction of MAR, the Market Abuse Regulation, which extends the existing Market Abuse Directive to many other types of financial instruments as well as related spot commodities. This further outlaws market manipulation and also contains monitoring obligations.

As Broadpeak’s post points out, compliance officers workload is continually increasing in order to monitor internal activity and ensure compliance. In the case of possible wash trades, a combination of pattern matching and intent will need to be considered amongst other things in order to ensure compliance.



About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.


No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s