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MAR, REMIT

Ofgem investigate possible spoofing in GB market

Ofgem, Great Britain’s National Regulatory Authority (NRA),  has opened an investigation into possible “spoofing” in the GB power market according to articles on the Bloomberg website (here), and Utility Week (here). The investigation has been named “Project Damson”. The activity is alleged to have manipulated the price of spark spread contracts.

The probe adds to the stream of investigations under REMIT across Europe, which in some cases have already led to a fine. The continuing application of REMIT by energy regulators, as well as the onset of MAR, has increased the appetite of many market participants to implement more “effective monitoring” inside their organisations, spanning processes, procedures, surveillance technology, training and suspicious transactor and order reporting. For example, see this recent article on Tabb Forum from a surveillance vendor on the application of MAR.

This investigation is likely to reinforce that trend.

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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