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Corona, MAR, REMIT

Insider trading accusation in commodities – balancing investigation closed in Germany

Following accusations of insider trading by US Senators relating to the Corona virus  a few weeks ago (see here), it has been reported that an investigation has opened into trading in oil futures based on inside information. This article on Bloomberg reports that the CFTC and FCA have opened probes into transactions in oil futures executed by traders who are alleged to have done so while in the possession of unpublished information relating to aspects of the strategy that the Russian government pursued last month with other members of the OPEC+ coalition. The CFTC investigation is reported to be focused on WTI contracts traded on CME venues.

In Germany the Bundesnetzagentur (German National Regulatory Authority, “BNetZa”) has published the partial results here of an investigation following “severe imbalances” in the German power system in June 2019.  Shortly afterwards, BNetZa opened supervisory proceedings against six balance responsible parties, following initial investigations by TSOs. However, proceedings against one of the parties were dropped as the initial suspicions could not be substantiated.

The announcement reports that 2 of the 5  parties have been found to be in breach of rules and have received a warning.  Three further proceedings are still ongoing.


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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