Pilot Project – Energy Trade Data Reporting Scheme Background information Waler Boltz, Chairman CEER Gas Working Group 19th Madrid Forum March 2011

Overview First project at EU level for energy wholesale data covering several Member States (including EXAA, EPEX Spot, EEX and OTC data); First project at EU level using a trade confirmation system like EFETnet’s eXRP to collect energy wholesale data; Cooperation with a surveillance software provider for the purpose of the Pilot Project (Scila/Cinnober) and import of the data received during the project for monitoring purposes; Organisation of discussions and meetings with regulators and market participants, including three steering committee meetings with representatives from all market participants; Dissemination of information on Pilot Project, e.g. on ERGEG website, EMART conference, E-World; High interest in Pilot Project by all market participants.

Motivation Enhanced framework for the supervision of traded energy markets is needed; Need to further develop market transparency; Current (national) wholesale energy market monitoring initiatives are not harmonised and comprehensive - Patchwork of reporting schemes may not support effective surveillance; Further increase in electricity and gas trading activities due to advances in European energy market integration. Pilot Project for energy trade data reporting

Objectives 1.Demonstration of the feasibility of an efficient and cost effective standardised trade data collection, storage and monitoring scheme; 2.Recommendations for a future European trade data reporting and monitoring scheme on issues such as data field definition standardisation, communication interfaces, transaction data anonymisation, secure data access and data publication; 3.Development of a concept and examples for analyses of trade (and other relevant) data for market monitoring purposes including potential market abuse; 4.Development of a concept and representative examples for statistical analyses of trade data.

Project organisation ERGEG Financial Services Working Group Steering Committee (European Commission, ERGEG, EFET, EEX, Spectron, RWE, FORMAET) E-Control Project Management & Support Cooperation with EFETnet (eXRP) Project partner: FORMAET Services Cooperation with Energy market venues

Pilot project test setting Establishing a fully functional prototype for collecting and processing energy trade data and fundamental data

IT-Architecture (1) – Concept for data sourcing Potential reporting paths Obligation to report

access authorisation and framework for public information European LevelNational LevelPublic Level Trade Data ACER ESMA …. National Regulatory Authorities National Financial Supervision Authorities Exchange Market Surveillances ….. General Public Academia Other interested parties … IT-Architecture (2) – Concept for Data Access

Preliminary results Feasibility of electronic trade data reporting via a trade confirmation system (EFETnet (eXRP)) tested and proven; Sample of historic trade data from three energy exchanges, OTC trades and fundamental data collected and imported to pilot project database (over reported transactions in electricity and over reported fundamental data), i.e. a significant coverage of the EU wholesale electricity market; Data analysis and statistical reporting successfully implemented through Scila Surveillance software as a sample for the monitoring of market abuse in the EU energy wholesale markets and development of surveillance routines. Prototype of a central energy trade data reporting and monitoring scheme successfully developed and implemented within 6 months.

Recommendations Legal framework for cooperation and data access across borders has to be ensured; Preference for a central data reporting system at EU level as opposed to national schemes; Market knowledge and relevant fundamental data are crucial for a meaningful monitoring of the energy wholesale market; Concerns of market participants with respect to data security and anonymisation have to be taken into account; Publication of aggregated data; Governance issues to be sorted out by ACER.

Vision: One central trade data base for the energy wholesale market Energy wholesale market participant Financial Market Authority A C E R All trades in Energy wholesale products National Regulatory Authority Competition Authority Access rights E S M A Trade database But: Interplay of REMIT with the EU financial market legislation has to be sorted out!

Next steps Draft final report (including statements regarding the specificities of the gas wholesale market); Presentation, discussion and approval in FIS WG; Dissemination of results of pilot project Commission services DG Energy and DG Market; ESMA and financial regulators; EFET, LEBA, EuroPEX; Public. Use the results of the pilot project for the REMIT discussion.

Thank you for your attention!