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).
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
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
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
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
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
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