RegTech Intelligence

Week one: transaction reporting begins for the Wholesale Energy Market

JWG analysis.

A new dawn began for the wholesale energy market on Wednesday, as the trade reporting obligations under the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) came into force.

The Agency for the Cooperation of Energy Regulators (ACER) issued this notice on Monday to inform market participants that the Agency’s REMIT information system (ARIS) was live and ready to take in the first wave of reported orders to trade on the Organised Market Place (OMP).  Those involved in the trading of energy products and derivatives can either report directly to the OMP or to a Registered Reporting Mechanism (RRM), both of which will reroute the information towards ARIS.  Of 511 RRM applications from market participants, there are (at the time of writing) now 30 that have been approved – these can be found here.  In some cases, the OMP will direct the market data to the RRMs to reduce complexity and filter the incoming data through a smaller handful of entities.

Within the last week, ACER have also issued the 10th version of the FAQs, which has reaffirmed a number of queries and elucidated to the obligation of OMPs to offer a data reporting agreement with the REMIT Implementing Act.  A Remit Quarterly was also released, reviewing the process for disclosing inside information, the different documents available for reporting, the number of cases in investigation at the current moment and the experience gained so far in the RRM application process.

But the main worries for market participants in the last few days have been ensuring that their data reporting agreements are in place and that their OMPs or RRMs are in compliance.  The tension has been rising and, now that the reporting door has opened, ACER will be watching closely to see who is playing ball.

There is plenty to come in the REMIT timeline, including the dreaded phase two reporting next year.  Keep up to date with all the latest by subscribing to our JWG alerts here.

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