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EMIR, Mifid

Report on Nordic power market default

A report has been published by Finanstilsynet, the Norwegian National Competent Authority, on the issues that contributed to a large default that took place last September 2018 on the Nordic power market (see here). The report identifies issues with the exchange operator who, according to this report on Reuters, relied too heavily on resources in the group, did not supervise member adequately and had unclear reporting lines between entities.

This report on the Montel web site further elaborates that Einar Aas, the trader involved, had nominated both a deputy and an “unnamed person” to trade on his behalf, where the unknown trader did not have adequate credentials. This article on the FT web site suggests that some of the requirements of MIFID II were also not met.

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.

Discussion

2 thoughts on “Report on Nordic power market default

  1. is there any link to this report?

    Posted by power | January 18, 2019, 8:19 am

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