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REMIT

New REMIT Quarterly – Including case study reminding of wide scope of REMIT

ACER published the latest “REMIT Quarterly” document on Friday, which can be found here. The document includes references to the recently published guidance on capacity hoarding (see here), data quality, and also highlights that the number of new cases under investigation has increased, as has the number of open cases.

However, the Quarterly opens with an anonymised case study on an investigation that took place into an “information provider” who was suspected on breaching REMIT Article 5, which contains the market manipulation prohibition.  In particular Articles 2(2)b and 2(3) b, define actual and attempted market manipulation via the dissemination of false news. The case involves a Provider who reported an outage incorrectly, which could have given rise to improper pricing and impact on demand and supply. The case closed without sanction.

The article highlights the fact that the prohibition is not limited to market participants, but “any person” including information providers, and others. It concludes that any legal or natural person (i.e. company or person) that uses the media to disseminate information that has potential to give price signals should have adequate quality and timely rectification procedures in place.

Although the document is simply emphasising the existing legislation, and is non binding, it will give many cause for thought as they consider how to ensure REMIT compliance.

Subscribers to  ETR Advisory’s Regulatory Support Service (see here) have received a more detailed analysis of this issue. Anyone wishing to discuss this further may email on info@etr-advisory.com.

 

 

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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