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EMIR update – REFIT published and new Q+A

EMIR “REFIT”, which introduces some significant changes to the way in which EMIR is complied with, has finally been published in the Official Journal of the European Union.  The document can be found here. REFIT introduces changes that have an impact on those in energy and commodities, including: Changes to the way in which the … Continue reading

ESMA issues updated opinion on market sizes

ESMA has issued an updated document on the market sizes to be used for the Ancillary Activity test, which must be undertaken by energy and commodity market participants who wish to use the Ancillary Activity exemption from MiFID II under Article 2(1)j. The document can be found here. The updated document, which is non binding,  adds … Continue reading

Two REMIT fines in Spain

Two fines have been levied by the CMNC,  the National Regulatory Authority of Spain, both for “physical withholding”: A fine of  5.8M Euros against Endessa Generación, S.A. (see here). A fine of 19.5M Euros against Naturgy Generación, S.A (see here). This follows a spate of other fines this year under REMIT (for example, see here).

Anti abuse news – and a panel

Recent market manipulation cases (for example see here) have continued the trend of an increased focus on anti abuse activity on the part of regulators. Earlier this year, the UK’s FCA issued a business plan (see here) which included a further focus on anti abuse activity under MAR. The FCA uses data collected under MiFID … Continue reading

GB capacity market – appeal delayed

There have been developments in the story around the suspension of the GB capacity market since our last post here. This story on the Utility Week web site reports that the appeal being brought on the European Commission against the suspension of the market has been delayed. The appeal is to be heard either in … Continue reading

MiFID II issues

While the impact of MiFID II on the energy and commodities sector has been relatively quiet recently (see here), there has been a great deal of discussion in the wider financial sector. The issue of “research unbundling”, that is the requirement that research be charged for rather than provided as a “bundled service”, has had … Continue reading

Mis-marking case in the US

The CFTC has charged a former natural gas trader for fraudulently mis-marking physical and futures natural gas trades, as announced in this press release. David Smothermon is alleged to have engaged in a multifaceted scheme that, among other things, involved causing false and deceptive entries in the company’s internal record-keeping system to exaggerate the value … Continue reading

FCA issues “Dear CEO” letter to wholesale brokers

The UK’s Financial Conduct Authority(FCA)  has issued this open letter to the CEOs of wholesale brokers, across several asset classes. The letter identifies some issues observed by the FCA at broker firms, focusing on four issues that could be causing “harm”: Compensation arrangements Governance arrangements Dealing with conflicts of interest A culture and mindset that … Continue reading

New position limits opinions from ESMA

ESMA yesterday issued further opinion documents on position limits already set by National Competent Authorities(NCAs) under MiFID II. This follows the publication of opinions in March (see here). Each opinion has confirmed the limit at the level originality set. The documents explain the rationale for each limit, how the deliverable supply has been calculated and how … Continue reading