REMIT Seminar 22 November Welcome and introduction Finn Dehlbæk, Director General

Transcription

1 REMIT Seminar 22 November 2016 Welcome and introduction Finn Dehlbæk, Director General

2 Welcome and introduction Welcome to DERA s 4 th REMIT Seminar Agenda Market for monitoring today includes and data presentations collection from The Danish Energy Regulatory Authority (DERA) Energy Exchanges Nord Pool and EPEX Spot DONG Energy The Agency for the Cooperation of Energy Regulators (ACER) 2

3 Today s agenda 13:00-13:20 Coffee and registration 13:20-13:30 Opening and welcome by Mr. Finn Dehlbæk, Director General, DERA 13: :50-14:15 14:15-14:40 REMIT in Denmark: Implementation and state of affairs Approach to market surveillance and REMIT Article 15 compliance: Nord Pool Approach to market surveillance and REMIT Article 15 compliance: EPEX Spot Mr. Mads Lyndrup, Head of Division, DERA Mr. Christian Johan Giswold, Nord Pool Ms. Florence Vary, Head of Market Surveillance EPEX Spot 14: Coffee break 15:00-15:20 15:20-16:00 REMIT compliance from the perspective of a market player Market abuse in the wholesale intraday energy market areas of concern + Q&A Ms. Volinka Augustenborg, DONG Energy Mr. Antonio Santos, Team Leader Market Conduct and Policy, ACER 16:00-16:30 Refreshments and networking 16:30 End of seminar 3

4 REMIT in Denmark Implementation and state of affairs Mads Lyndrup, Head of Division

5 REMIT in Denmark - Agenda 1 Motivation for today s seminar 2 Overview of REMIT 3 Cooperation and coordination 4 Hanne Investigation Lundgaard and og enforcement Christian Meyer 5 State of affairs 5

6 1 Motivation for today s seminar 2 Overview of REMIT 3 Cooperation and coordination 4 Hanne Investigation Lundgaard and og enforcement Christian Meyer 5 State of affairs 6

7 1.1 Why the focus on PPATs and article 15 In this 4th edition, strong emphasis is put on Article 15 of REMIT. ( ) guidance to NRAs on how to monitor the compliance of these persons with the obligations to (i) notify potential REMIT breaches and (ii) establish and maintain effective arrangements and procedures to identify such potential breaches. ( ) PPATs have exclusive market knowledge of their market and clients, and hence are in a suitable position to monitor trading activity and detect abusive behaviour. ( ) 7

8 1.2 The intrayday market The importance of intraday markets for electricity in Europe is increasing together with the growing need for short term adjustments due to the greater penetration of intermittent generation from RES into the electricity systems. ACER/CEER Market Monitoring Report Capacity should be allocated in the day-ahead and intraday market time-frames using implicit allocation methods, in particular methods which allocate electricity and capacity together. In the case of single dayahead coupling, this method should be implicit auction and in the case of single intraday coupling it should be continuous implicit allocation. ( ), CACM GL 8

9 1.3 The intrayday market Several Danish Market Players have requested European guidelines about trading in the intraday-market: A level playing field across Europe 9

10 1.4 Transparency in the North Sea - DERA considers that market transparency in the Danish part of the North Sea could be significantly improved if market players publish the time an incident occurs, e.g. a shut down, and how much capacity of total available capacity is affected. - DERA will enter into dialogue with relevant stakeholders to examine possibilities to publish data on gas flows to the Netherlands, i.e. via Tyra Vest-F3. Such flow data will provide market players with a better understanding of amounts being transported to the Netherlands and the Danish gas market. 10

11 REMIT in Denmark - Agenda 1 Motivation for today s seminar 2 Overview of REMIT 3 Cooperation and coordination 4 Hanne Investigation Lundgaard and og enforcement Christian Meyer 5 State of affairs 11

12 2.1 What is REMIT? EU regulation on wholesale energy market integrity and transparency Coherent with financial legislation: MAR ( MAD II )/MIFID II Open and fair competition by increasing transparency in wholesale markets Prohibition on market abuse (insider trading and market manipulation) Obligation to publish inside information Competition law continues to apply TFEU Articles 101 (cartels) and 102 (abuse of dominance) You need a multi-discipline compliance setup 12

13 2.2 Scope of REMIT wholesale energy markets Any market within the Union on which wholesale energy products are traded wholesale energy products Trading in all wholesale energy products: supply and transportation (commodities and derivatives) market participants Any person who enters into transactions in one or more wholesale energy markets 13

14 2.3 The four REMIT commandments 1 No insider trading (Article 3) 2 Obligation to publish inside information (Article 4) 3 No market manipulation (Article 5) 4 Reporting and registration (Articles 8 and 9)! 14

15 2.4 Inside information (1/3) The obligation to publish inside information in Article 4 Market participants shall disclose any inside information which they possess in respect of business or facilities which they or their parent or related undertaking owns, controls or has operational responsibility for in an effective and timely manner. Information of a precise nature which have not been made public, which relates, directly or indirectly, to one or more wholesale energy products and which, if it were made public, would be likely to significantly affect the prices of those wholesale energy products. 15

16 2.4 Inside information (2/3) 4 th edition of ACER Guidance: Market participants should ensure inside information is published as soon as possible, but at the latest within one hour (timely manner) The information should be easy to understand (efficient manner) Up to market participants to judge whether information that they hold constitutes inside information (and therefore needs to be made public). 16

17 2.4 Inside information (3/3) Prohibition of insider trading: Persons who possess inside information in relation to a wholesale energy product is prohibited from using that information when trading wholesale energy products to which that information relates; disclosing that information to any other person; recommending or inducing others to trade on the basis of inside information. Internal processes and controls around inside information are important. 17

18 2.5 Prohibition of market manipulation Any engagement in, or attempt to engage in, market manipulation on wholesale energy markets is prohibited (Article 5). Four different categories of market manipulation: 1) false/misleading transactions; 2) price positioning; 3) transactions involving fictitious devices/deception; 4) dissemination of false and misleading information. 18

19 2.6 ACER Guidance Examples of what behaviour might constitute insider trading, attempted market manipulation and market manipulation can be found in ACER s latest guidance on the application of REMIT (4 th edition, published on 17 June 2016). Non-binding guidance in order to ensure that NRAs carry out their tasks under REMIT in a coordinated and consistent way. Will be updated from time to time to reflect the changing market conditions and the experience gained by NRAs and ACER. Available via the REMIT Portal ( and DERA s website ( 19

20 2.7 The REMIT Portal The single point of access for all REMIT-related applications and key documents Includes ACER Guidance REMIT Reporting User Package Q&A and FAQ on REMIT REMIT Annual Reports 20

21 REMIT in Denmark - Agenda 1 Motivation for today s seminar 2 Overview of REMIT 3 Cooperation and coordination 4 Hanne Investigation Lundgaard and og enforcement Christian Meyer 5 State of affairs 21

22 3.1 Cooperation and coordination Close cooperation and coordination is necessary to ensure proper monitoring and transparency of energy markets. In order to guarantee adequate levels of market abuse detection, REMIT provides a general division of tasks for the different bodies. ACER NRAs PPATs 22

23 3.2 Division of tasks ACER NRAs PPATs Data collection Access to data from ACER Market monitoring (notification) Shall monitor at a European level May monitor at a national level Shall establish and maintain effective arrangements and procedures Investigation Coordination of cross-border investigations Enforcement 23

24 Agenda 1 Motivation for today s seminar 2 Overview of REMIT 3 Cooperation and coordination 4 Hanne Investigation Lundgaard and og enforcement Christian Meyer 5 State of affairs 24

25 4.1 Investigation and enforcement (1/2) DERA has powers through the Danish Electricity Supply Act to monitor, investigate and enforce REMIT. Coordinated surveillance of Urgent Market Messages (UMMs) Analyses of wholesale markets Participation in several regulatory groups, expert groups and market surveillance groups Suspicious Transaction Reports (STR) from ACER and PPATs Open door policy vis-à-vis Market Players (tips and hints) Bi-annual Market Monitoring Report 25

26 4.2 Investigation and enforcement (2/2) Cross-border cooperation with ACER, NRAs, OMPs Cooperation with national authorities The Danish Financial Supervisory Authority The Danish Competition and Consumer Authority The Danish Public Prosecutor for Serious and International Crime (SØIK) DERA welcomes dialogue with market participants 26

27 REMIT in Denmark - Agenda 1 Motivation for today s seminar 2 Overview of REMIT 3 Cooperation and coordination 4 Hanne Investigation Lundgaard and og enforcement Christian Meyer 5 State of affairs 27

28 5.1 Cases investigated by DERA (closed) Electricity Natural Gas

29 5.2 State of affairs 7 January 2015 Entry into force of REMIT Implementing Acts 26 September th edition of FAQ on REMIT Transaction Reporting 1 January 2017 (scheduled) Collection of Inside Information via web feeds 17 March 2015 ACER published the European Register of MPs 6 October registered MPs in the European Register 3 January 2018 MiFID II and MiFIR apply 7 October 2015 First phase of data reporting 7 April 2016 Second phase of data reporting 17 June 2016 ACER 4th Guidance (PPATs) During 2017 Implementation of additional IT tools and procedures will continue (to further enhance the existing systems) 3 July 2017 MiFID II transposed into national law 8 January 2015 REMIT Portal go live 3 July 2016 MAR takes affect 29 End of Q REMIT cases under ACER review

30 Takeaways from the presentation DERA has during 2015 engaged with ACER to put intraday on the agenda. DERA to push for European guidelines. DERA to enhance engagement with PPATs in relation to their obligations under REMIT Article 15 and our supervision of Article 15 compliance. DERA cooperates extensively with ACER, Nordic/Baltic and other European regulators to develop uniformity in the application of REMIT across borders. Market participants are recommended to actively use the compilation of information in the REMIT Portal. Internal compliance setups of market participants should encompass both REMIT, financial legislation and the competition rules. Registration is not a one-off event, but rather an ongoing requirement - Article 9(5). 30

31 Thank you for your attention