TITRE Public Workshop on REMIT Ljubljana, 19 July 2012 Issues for the 2 nd edition of the ACER Guidance on the application of REMIT Volker Zuleger Seconded National Expert Axel Biegert Acting Chair of the Wholesale Market Surveillance TF

Outline. Background. Issues currently considered for the 2 nd edition of the ACER Guidance. Discussion paper on inside information platforms. The way ahead

ACER Guidance on the application of REMIT definitions according to Article 2 of REMIT. Legal basis: Art. 16(1) of REMIT. Describes ACERs understanding of the definitions of Art. 2 of REMIT, but does not provide legal interpretation (rules of practice, no rules of law). Directed to NRAs and intended only to establish a common understanding between ACER and NRAs on REMIT definitions (Art. 2). Published for sake of transparency

Potential issues of the 2 nd edition of the ACER Guidance. Review current understanding of market abuse definitions in the 1 st edition of the ACER guidance. Increase scope of ACER guidance to definitions ofmarket participant and wholesale energy product. Consider to increase the scope of the ACER Guidance beyond the application of REMIT definitions

Outline. Background. Issues currently considered for the 2 nd edition of the ACER Guidance. Discussion paper on inside information platforms. The way ahead

Rewiew of the application of REMIT market abuse definitions. Definition of inside information » versus transparency information to be published according to transparency guidelines » versus own plans and strategies for trading » in wholesale gas markets (e.g. production outages, reductions in upstream supply) and possibility of a volume threshold similar to the threshold in wholesale electricity markets (e.g. 10 mcm/d) » Update forms on delayed disclosure of inside information. Definition of market manipulation » In commodity markets, particularly concerning day- ahead markets

Increase scope of ACER guidance to definitions of market participant, wholesale energy market and wholesale energy product. Definition of market participant, in particular » in relation to the definition of final customer, » concerning its application in wholesale gas markets (e.g. Shippers, LSOs, SSOs), in view of the market participants obligation to disclose inside information » as regards its application to non-EU- and non-EEA market participants. Definitions of wholesale energy market and wholesale energy product, in particular » as regards the market segment coverage (e.g. balancing markets)

Issues going beyond the application of REMIT definitions. Scope of REMIT in view of new EU financial market legislation, Articles 1 and 8 of REMIT. Application of Article 3 of REMIT, in particular of the exemptions to Article 3(1) of REMIT. Application of Article 4 of REMIT, in particular concerning the disclosure of inside information in an effective and timely manner » Not further specified in REMIT » Goal: broad dissemination of information and effortless accessibility » Platform solution(s) for the publication of inside information discussion paper

Outline. Background. Issues currently considered for the 2 nd edition of the ACER Guidance. Discussion paper on inside information platforms. The way ahead

Platform Options for the publication of inside information Discussion Paper published 18 July 2012 Problem:. Lack of transparency through lack of platforms for disclosure of inside information. Existing transparency platforms often lack timeliness of disclosure. Differences in transparency and inside information Proposed Solutions:. Option A: Disclosure through existing and future transparency platforms. Option B: Nomination of national or regional platforms Written feedback welcome by 31 July 2012

Outline. Background. Issues currently considered for the 2 nd edition of the ACER Guidance. Discussion paper on inside information platforms. The way ahead

2 nd edition of ACER Guidance and Recommendations Timeline 19 July 2012Public Workshop Sept 2012 Publication of 2 nd edition of ACER Guidance and Recommendations

ACER milestones Mid 2013 Mid / / / 2013 Presumed COM proposal implementing acts OJ Publicatio n Entry into force of REMIT ACER determines and publishes data format for registration ACER recommendations on record of transactions etc Expected start of data collection through ACER under REMIT ACERs 1st edition of guidance on REMIT definitions Registration of market participants applies at the latest ACERs 2nd edition of guidance and recommendations Presumed adoption of implementing acts after comitology procedure MonitoringOperateDesignPlanBuild Further editions of ACER guidance on REMIT definitions if necessary

Discussion

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