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Abuse investigations news and updates

Following investigations earlier this year into a  possible breach of REMIT in Italy due to the illegitimate  withholding of generation, this article has been published on the ICIS web site. The post names Enel and Sorgenia as being involved in the investigation, and discusses the allegation that spot power was withheld from the TSO, forcing it to be procured as ancillary services in the balancing market at a higher price. It is alleged that the TSO paid higher prices because of this activity. It remains to be seen if a fine will be issued. However the article quotes the NRA as stating that “retroactive measures will not be applied”.

In the meantime, in the US, the New York Federal Court has denied a motion by the CFTC for summary judgement in a case of alleged price manipulation, broadly stating that it is necessary to show greater proof of “intent” than simply proving “intent to affect market price”. The case is discussed here on The National Law Review web site and has been permitted to continue.

In addition, there has been a development in a long running case in the US against a group of banks for the alleged rigging of gold and silver physical and COMEX future prices from 1999 to 2007, as reported here on the web site. The case was brought by a group of gold and silver traders against the group of banks. Lats week, one defendant bank was dismissed from the case, whilst a ruling was made that anti trust litigation may be pursued against two others.

An increased number of anti abuse cases both in North America, and in Europe are being opened. We can expect this to continue in Europe with the start of MAR and collection of REMIT data.


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.


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