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MAR, REMIT

Market abuse catchup – REMIT fine, inside information guidelines and more

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.

 

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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