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Record fine levied under REMIT – ICE spoofing

On Wednesday Ofgem, the National Regulatory Authority of Great Britain, announced that InterGen has been fined 37.2 million GBP for  breaches of REMIT Article 5. The announcement can be found here and further information here.

The breach relates to activity in the winter of 2016 and involves sending misleading notifications to the ESO. It also reflects  weaknesses in procedures, management systems and internal controls with respect to REMIT compliance.

The activity occurred on four occasions, and comprised:

  • Submitting misleading Physical Notifications (PN)
  • Submitting misleading Stable Export Limit (SEL) information

The fine of £35m was reduced to £24m for early settlement. Disgorgement of £12.7m was paid to the operator in addition. There was no separate fine for grid code breach.

In the US ICE has issued a disciplinary notice against a trader for spoofing, which can be found here. There was a suspension of 2 months, but no penalty was levied. More can be found here on the DCM blog.


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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