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MAR, REMIT

Manipulation fines under REMIT in Spain

The Comisión Nacional de los Mercados y la Competencia (CNMC), the Spanish National Regulatory Authority (NRA) has fined Galp Gas Natural S.A.and Multienergía Verde, S.L.U 80,000 EUR and 120,000 EUR respectively for market manipulation under REMIT. This follows a larger market manipulation fine under REMIT of 5 million Euros announced in October (see here).

In the case of Multienergía,  the behaviour involved executing transactions by transacting at artificial prices, thus sending a misleading price signal. This permitted prices to be set between 24% and 97% lower than reference prices for the same products and trading days. The press release can be found here.

In the case of Galp, the behaviour involved selling MIBGas for next day delivery at an artificially high level in the final seconds of the market, as a “marking the close”. The press release can be found here. The fine was set at 100,000 EUR but reduced by 20,000 due to immediate settlement.

 

 

 

 

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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