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MAR, REMIT

ACER paper on layering and spoofing and other market abuse news

Last Friday, ACER issued this report on the application of the REMIT market manipulation prohibition (Article 5) in relation to layering and spoofing. This is the third such “example market abuse” paper issued by ACER, with one on capacity hoarding  issued in 2018 (see here) and one on wash trades in 2017 (see here). The paper follows some fines and other cases around such practices as well as “phantom orders” in general (see here and here for example). It goes through some example prohibited activity and maps it to the prohibitions in REMIT, primarily relating to the sending of “misleading price signals” and “price positioning”.

ACER also issued this updated version of the 4th edition of the REMIT guidance at the same time.

Last week the Bundesnetzagentur (German National Regulatory Authority) together with the Bundeskartellamt (competition regulator)  opened a consultation on the monitoring for abusive practices in wholesale energy. The press release in English can be found here and the full consultation document in German here. The consultation closes on 20th May 2019.

This article published by Greenberg Traurig reports on the fact that only a small proportion of STORs (Suspicious Transaction and Order Reports) submitted to the UK’s FCA under MAR (and preceding legalisation) result in investigations and convictions.

 

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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