There has been a great deal of anti abuse activity taking place since this blog “took a break” a few weeks ago. Some of the news includes the following:
ACER recently published a quarterly newsletter (see here) which includes a description of a fine levied under REMIT in the Czech Republic for failing to report in a timely manner (see page 5). While the fine is relatively low at 11,250 EUR, it represents the first fine relating to reporting for quite some time.
The UK’s Financial Conduct Authority (FCA) has issued this best practice note on identifying, controlling and disclosing inside information. It suggests at a high level how to identify, control and, if necessary, disclose inside information, as defined by MAR. Those in the energy industry will also need to consider the updated guidance recently issued by ACER with respect to REMIT on inside information (see here). ETR Advisory has issued a paper to its clients on this topic.
Megan Butler of the FCA made this speech outlining expectations of firms in the light of the COVID-19 challenge. It includes an expectation that the prevention of and detection of market abuse remain a priority. The FCA also issued a new Market Watch newsletter number 63 here which covers items such as conduct and market abuse.
The CFTC has opened an investigation into Trafigura relating to oil trading. The investigation is reported here in the Guardian.
The London Metals Exchange (LME) are opening a new working group on issues of market conduct. The notice can be found here.
This article on the Progressive Farmer web site reports that a class action against Archers Daniels Midland alleging market manipulation of ethanol futures will continue following a court not agreeing to dismiss the claim in September.
Despite the issues caused by COVID-19, it would appear that market abuse issues will continue to dominate for the foreseeable future.