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Post 750 – where are we now?

This is the 750th post of this blog, which has been running for three and a half years. In that time much has changed, both from inception and since the 500th post (see here), written about fifteen months ago. In that post, the fact that “big compliance” is here to stay in the commodities and energy markets was dawning upon the industry.

Since then, we have seen the passing of all of the REMIT reporting deadlines, which led to a flurry of activity. While the final backloading deadline of 6th July brought that project to a close, it also brought the fact that regulators would soon be able to monitor market activity to the fore. This combined with the start of MAR on July 3rd increased the sector’s focus on monitoring, which has been building up for several years. Rules combined with several investigations in the energy market under REMIT, as well as a stream of investigations in the financial markets(see this story on the Bloomberg web site), have meant that monitoring is one of the sector’s key focuses at present.

The main question for the industry however is the degree to which MiFID II will apply. While the position limits rules will apply to all, the shape of the final Ancillary Activity test will determine which market participants will be subject to the full set of MiFID rules. We have been awaiting the next set of rules for some time. The outcome of market participants’ tests could have a significant effect on the regulatory burden.

Other than the two “big ticket” items, changes to the current rules continue, for example the EMIR changes currently in the approval process. And the new rules keep coming: Brexit, likely to be with us in the first half of 2019, is likely to have a significant impact on how rules are implemented. We can also expect to see the impact of new margining rules being to take effect, whether we are NFC-, NFC+ or FC.

To meet these requirements, we can expect a series of further technology solutions. In last week’s CTRM Conference, the term “ComRegTech” was presented. This collective term could be used to describe regulatory technology solutions for the sector, as as extension to the “RegTech” concept.

It will be interesting to see:

  • How well surveillance solutions are being rolled out
  • The impact of MiFID II
  • The range of ComRegTech solutions developing,

by the time we get to the 1000th post, amongst  many other things. We will try to keep track of all of them on this site.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on energy and commodity regulation. He has more than 20 years of experience in energy and commodity trading, credit, risk and financial technology. He has delivered a series of trading, credit and risk solutions to a wide variety of oil majors, power and gas companies and investment banks. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy 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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