Q&As on REMIT – Question III.2.44.

Reasonable steps that a market participant has to undertake are stipulated in Article 11(2), third subparagraph, of Commission Implementing Regulation (EU) No 1348/2014 in order to verify the completeness, accuracy and timeliness of data which they submit through third parties to the Agency. Do these reasonable steps differ depending on the reporting channel that the market participant selects – i.e. OMP, RRM, etc.?


Answer:

The Agency’s understanding is that the only reporting channels for transactions executed at organised market places, including matched and unmatched orders under Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014, are the organised market places concerned, trade matching and trade reporting systems.

The aim of the limitation to the above-mentioned three reporting channels for reporting under Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014 is to ease the reporting for the market participants as specified in Recital 5 of Commission Implementing Regulation (EU) No 1348/2014: ‘’Since market participants cannot be expected to record such data with ease, matched and unmatched orders should be reported through the organised market place where they were placed or through third parties who are able to provide such information’’.

Taking into consideration Recital 5, it seems that the organised market place concerned and/or market participants can choose another organised market place, a trade matching and/or a trade reporting system, i.e. a third-party Registered Reporting Mechanism (RRM), to report data under Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014.

In the registration of market participants through NRAs, the reporting through the organised market place concerned is considered as the default solution for reporting of records of transactions, including orders to trade, to the Agency, according to Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014. This is based on the underlying principle of the REMIT reporting regime set in Article 8 of REMIT that the reporting obligations on market participants shall be minimised by collecting the required information or parts thereof from existing sources where possible.

As a consequence of data collection according to Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014 from organised market places as existing sources, the Agency believes that this will ensure a high degree of data quality.

Against this background, the reasonable steps a market participant shall take to verify the completeness, accuracy and timeliness of the data, which they submit through third parties, have to be distinguished depending on the reporting channel selected:

a) Reporting of wholesale energy products through the organised market place where the transactions were executed or the orders to trade were placed (‘organised market place concerned’):

The organised market place concerned, as an RRM, will have responsibility for the completeness, accuracy and timely submission of the data to the Agency according to Article 11(2) of Commission Implementing Regulation (EU) No 1348/2014 itself. Since the organised market place concerned is the existing source, it is difficult to imagine any additional steps market participants could take to verify the completeness, accuracy and timeliness of the data which they submit through the organised market place concerned. Accordingly, the market participant selecting the organised market place concerned for data reporting according to Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014 will be relieved from taking reasonable steps to verify the completeness, accuracy and timeliness of the data which organised market places concerned submit as RRMs on their behalf to the Agency to the minimum necessary.

b) Reporting of wholesale energy products through a third-party RRM selected by the organised market place concerned:

The same as above applies if the organised market place concerned selects a third party RRM and thereby outsources the service for market participants of data reporting according to Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014 to the Agency. Since the organised market place concerned is the existing source, it is the organised market place concerned that will have to take reasonable steps to verify the completeness, accuracy and timeliness of the data which they submit through third party RRMs. The market participant would again be relieved from taking reasonable steps to verify the completeness, accuracy and timeliness of the data which organised market places concerned submit as RRMs on their behalf to the Agency to the minimum necessary.

c) Reporting of wholesale energy products through a third-party RRM other than the organised market place concerned selected by the market participant (i.e. another organised market place, trade matching or trade reporting system):

Firstly, it is important to note that such third-party RRM must be able to provide the complete data set to the Agency i.e. to report all data fields, e.g. Contract IDs, as defined by Commission Implementing Regulation (EU) No 1348/2014, and as explained in detail in the Agency’s REMIT Reporting User Package. If this is not the case, the Agency will give a warning to the RRM reporting incomplete data in line with the rules laid down in the RRM Requirements document. Furthermore, if adequate data quality standards and/or compliance with RRM requirements are still not met within the time-frame indicated in the warning, the Agency may, after a certain period of time, which shall not be shorter than six months, discontinue access to the ARIS system for the RRM concerned and inform the market participants affected by the RRM’s non-compliance.

In addition, if the market participant chooses to report its transactions executed at organised market place not through the organised market place concerned, but through a third-party RRM selected by the market participant (i.e. another organised market place, trade matching or trade reporting system), the Agency points out that the market participant will have to ensure the following in order to comply with its obligation to take reasonable steps in order to verify the completeness, accuracy and timeliness of the data which it submits through the third-party RRM to the Agency:

Whilst the organised market place concerned will still be responsible for the completeness and accuracy of the relevant source data, the market participant will be responsible for accuracy, completeness and timeliness of the data concerning (1) the transfer of the data from the organised market place concerned to the third-party RRM selected by the market participant, (2) the handling of the data by the third-party RRM and (3) the transfer of the data from the third-party RRM to the Agency. Both transfers entail a significant risk to undermine the completeness, accuracy and/or timely submission of data to the Agency. Regarding the transfer of the data from the third-party RRM to the Agency, the market participant will not be responsible for failures in the completeness, accuracy or timely submission of the data in cases where these failures are clearly attributable to the respective third party. Nevertheless, the market participants will have to prove to National Regulatory Authorities, on their request, that they have undertaken reasonable steps to verify the completeness, accuracy and timeliness of the data submitted to the Agency.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question III.2.45.

Can organised market places limit their responsibilities according to Article 11(2) of Commission Implementing Regulation (EU) No 1348/2014 and contractually delegate their responsibilities to the market participants concerning the completeness, accuracy, and timeliness of data to be submitted to the Agency according to Article 6(1) of the said regulation?


Answer:

Article 11(2) of Commission Implementing Regulation (EU) No 1348/2014 stipulates that persons required to report data referred to in Articles 6, 8 and 9 shall have the responsibility for the completeness, accuracy and timely submission of data to the Agency and, where required, to national regulatory authorities. Where a person required to report data reports data through a third party, then the person shall not be responsible for failures in the completeness, accuracy or timely submission of data which are attributable to the third party. In those cases, the third party shall be responsible for failures, without prejudice to Articles 4 and 18 of Regulation (EC) No 543/2013 on submission of data in electricity markets.

Accordingly, should an organised market place offer a data reporting agreement according to Article 6(1), second subparagraph, of Commission Implementing Regulation (EU) No 1348/2014, to a market participant, it will not be possible to limit the responsibility, with such a data reporting agreement, of the organised market place concerned being a third party for the reporting of data in the meaning of Article 11(2), second subparagraph, of Commission Implementing Regulation (EU) No 1348/2014. Any such contractual delegation of responsibilities from an organised market place to a market participant would be in breach of a directly applicable EU regulation and therefore illegal.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question III.2.37.

A registered market participant would like to report its non-standard contracts. Does this entity need to register as an RRM and fulfill all criteria concerned in order to be able to report its contracts: (a) for itself and (b) on behalf of its counterparties?


Answer:

If a market participant intends to report directly its non-standard contracts (for self-reporting purposes and/or to offer reporting services to others), it should indicate this in the electronic registration form when registering as a market participant with the competent NRA (Section 5 of the registration form ‘Intention to become a Reporting Entity’). The RRM registration process will then begin directly from there. The market participant is required to fulfil all criteria for the RRM as specified in the RRM Requirements document.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question III.2.38.

I am a market participant currently in the process of registering as an RRM in order to be able to report data in the second phase of reporting as of 7 April 2016. Which reporting interface do I have to choose for testing?


Answer:

With regard to the reporting of data as of 7 April 2016, the Agency requests self-reporting market participants that are already in the RRM registration process to limit themselves to the ARIS WEBGUI interface for their registration. This will significantly simplify their testing phase during the RRM registration and therefore accelerate their approval as an RRM in due time before 7 April 2016. Once approved as an RRM and if they decide later, the RRM may choose more interfaces for reporting (Web Services or and SFTP) through the change request functionality in ARIS.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question III.2.39.

With regard to the reporting of data as of 7 April 2016, would the Agency recommend market participants to start the RRM registration process in order to report their own data or to use reporting services of already registered RRMs?


Answer:

Please note that all entities reporting data to the Agency should be registered as RRMs. In order to decide whether to become an RRM and report its own data or use an already registered RRMs the market participant should take into account the complex and detailed process of RRM registration. Please note that the registration as an RRM is not a unique exercise, but being an RRM will require the market participant to comply with the Agency’s RRM requirements on an ongoing basis and to adapt to future upgrades of the Agency’s REMIT Information System and changes of the transaction reporting regime. Therefore, the Agency strongly recommends market participants to report their data through already registered RRMs. The list of already registered RRMs is accessible at https://www.acer-remit.eu/portal/list-of-rrm.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question III.2.41.

What happens if the reporting data are different between buyer and seller?


Answer:

The data should be reported to the Agency following the normal procedure as defined by the respective documentation available on the REMIT Portal. However, ACER may request from RRMs to investigate and correct such submissions, if necessary.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question III.2.42.

What is the reporting procedure during force majeure, either declared by the RRM or by the market participant?


Answer:

The Agency has established the ARIS Contingency Plan which is available to RRMs in the documentation section of the RRM Admin Profile. The Contingency Plan provides all instructions on what RRMs and market participants have to do in case of different scenarios that may impact the reporting.

As for the other obligations between the market participant and its RRM, the Agency points out that their data reporting agreement should take into account the ARIS Contingency Plan.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question III.2.43.

If a market participant delegates reporting of transactions executed at an organised market place to a third party RRM, is the organised market place obliged to send data to this third party RRM in the ACER xml schema as defined by the Agency?


Answer:

In case the market participant delegates reporting of transactions executed at an organised market place to a third party RRM, the Organised Market Place is not legally required to send the data to this third party RRM in the ACER xml schema as defined by the Agency.

The details of reporting between the organised market place concerned and the third party RRM reporting to the Agency on behalf of the market participant should be determined in a data reporting agreement between the relevant parties.

However, the Agency points out that the third party RRM has the obligation to report the market participant’s data executed at an organised market place in the relevant ACER xml schema as defined by the Agency.

Finally, please note that pursuant to Article 11(2) of Commission Implementing Regulation (EU) No 1348/2014, persons required to report data shall have the responsibility for the completeness, accuracy and timely submission of data to the Agency. If the persons required to report data reports those data through a third party, the third party is responsible for the failures in the completeness, accuracy or timely submission of the data attributable to a third party.

Persons required to report data shall nevertheless take reasonable steps to verify the completeness, accuracy and timeliness of the data which they submit through the third party.

RSS_Icon Last update: 16/02/2016  

Q&As on REMIT – Question III.2.17.

During the RRM Registration process, which form should be filled out and uploaded when requesting a digital certificate from the Agency?


Answer:

In case where the certificate is requested for a physical person (e.g. for registering the RRM Admin account), the ACER-PO.pdf form must be used.

When a certificate is requested for the purposes of authenticating a machine communication (e.g. when establishing a WebService or SFTP interface with ARIS), the ACER-PSN.pdf form should be used.

Both forms are available on REMIT Portal: https://www.acer-remit.eu/portal/custom-category/acer_remit_reporting_user_package

RSS_Icon Last update: 08/01/2016  

Q&As on REMIT – Question III.2.34.

As an approved RRM, are we obliged to offer reporting services for the submission of “Non-Standard” Contracts pursuant to Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014?


Answer:

According to the Agency’s understanding, the obligation for organised market places to offer a data reporting agreement to the market participants pursuant to Article 6(1) of Commission Implementing Regulation (EU) No 1348/2014 does not relate to the reporting of non-standard contracts/contracts executed outside the organised market place. Since there is no obligation to report non-standard contracts/contracts executed outside the organised market place, the obligation for organised market places to offer a data reporting agreement on the request of the market participants does not apply in this case. However, organised market places may nevertheless be willing to assist the market participants with reporting of non-standard contracts/contracts executed outside the organised market place.

RSS_Icon Last update: 08/01/2016  

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