This category contains 70 posts

Algorithmic trading – FCA report and more

The UK’s Financial Conduct Authority (FCA) yesterday issued this report on “Algorithmic Trading Compliance in Wholesale markets. It reviews the requirements of MiFID II, MAR and local legislation for those companies engaging in algorithmic trading in covered instruments. The document reminds the market that any company which engages in “algorithmic trading” in financial instruments is … Continue reading

Ofgem REMIT powers, fines set and more anti abuse developments

There has been more activity this week on the anti abuse side of things, following Monday’s post here on recent fines. Ofgem, the National Regulatory  Authority for the GB energy market, is to be given more powers by the UK government to enforce REMIT in terms of access to documents and the power to take … Continue reading

Anti-abuse fines on both sides of the Atlantic and more

There has been an increased focus on anti abuse activity in the energy and commodities markets over the past year, due to a combination of the start of MAR in July 2016, the start of REMIT data collection and also increased investigations by both financial and energy regulators. This year has already seen a fine … Continue reading

2018 begins – what does it have in store?

The 2018 working year starts today for most, which provides a good opportunity to consider the months ahead. Start of year The end of 2017 has unsurprisingly busy, with several pieces of news posted since our “end of year” entry.  In addition to today being the first day on which Swiss “FC-” and “NFC+” entities … Continue reading

The year winds down, sort of

For many this will be the last working day of the year. However, the wind down is not quite as widespread as usual, given the proximity to the MiFID II deadline, less than two weeks away. With several new pieces of information coming out in the last days, both generally (see here) and related to … Continue reading

ESMA releases new MiFID II and EAMP information as the clock counts down

As the last full working week before MiFID II starts begins, ESMA has released several new pieces of information, some of which is very relevant to those in energy and commodities. A new version of the commodity derivatives questions and answers document has been released, and can be found here. It contains several important answers … Continue reading

Emissions Allowance Market Participant requirements

The start of MiFID II on 3rd January 2018 also has an impact on Emissions Allowance Market Participants(EAMP) under MAR. The threshold for an EAMP is defined by MAR Article 17(2) and Delegated Regulation 2016/522,  as a group with over  6 million tonnes of carbon a year or over 2430 MW of rated thermal input … Continue reading

FCA warns of increased MAR oversight

The start of MiFID II on 3rd January increases the scope of the Market Abuse Regulation, which itself started on 3rd July 2016 (see here). Financial instruments executed on Organised Trading Facilities (OTF) as well as emissions allowances will be in scope. As a result the requirements of an Emissions Allowance Market Participant (EAMP) increase … Continue reading

Manipulation cases

The global financial, commodity and energy markets have seen increased scrutiny from regulators over the last few months, particularly in terms of anti manipulation activity.  In Europe, rule sets such as MAR and REMIT are starting to bite, which is causing market participants to increase anti abuse measures. This rise in diligence is also being … Continue reading

Updated MAR Q+A issued by ESMA

ESMA has released an updated Questions and Answers document on the Market Abuse Regulation, which can be found here. The document contains several updates, including an update to the clarification on who is a “Professional Person Arranging and Executing Transactions” (PPAET), which is covered by question 6.1 on page 11. The updated answer makes clear … Continue reading