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MAR, REMIT

£2.1m fine in GB under REMIT for spoofing

Ofgem, the National Regulatory Authority for Great Britain, announced today the Engie Global Markets(EGM) has been fined £2.1 million. The press release can be found here, and a fuller announcement here.

The fine relates to activity carried out in NBP (National Balancing Point) gas contracts, and took place between June and August 2016. The investigation was initiated due to a “tip off” from a market participant, according to the announcement. The fine was reduced due to early settlement and EGM were found to have cooperated in the investigation. It is also noted in the announcement that EGM did not “take appropriate measures to prevent or detect the breach from happening.” This is stated to have been addressed since the activity took place.

The fine sends a further message to the market that REMIT will be used increasingly as a tool again market abuse in future. The topic will likely  be discussed at ACER’s “EMIT forum” that starts today in Ljubljana.

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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