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TRUM – Section 3.3

Who shall report?

In accordance with Article 8 of REMIT, market participants, or a person or authority on their behalf, shall provide the Agency with a record of wholesale energy market transactions, including orders to trade (‘trade data’). Reporting obligations cover:

a) market participants, which means any person, including transmission system operators, who enters into transactions, including orders to trade, in one or more energy markets;

b) third parties acting on behalf of market participants;

c) trade reporting systems;

d) organised market places, trade matching systems or other persons professionally arranging transactions;

e) trade repositories registered or recognised under Regulation (EU) No 648/2012 (EMIR);

f) competent authorities which have received the information in accordance with Article 25(3) of Directive 2004/39/EC (MiFID) or ESMA when received in accordance with Regulation (EU) No 648/2012 (EMIR).

The Implementing Acts establish uniform rules on the reporting of trade data and specify the reporting channels. An overview of the relevant provisions of the Implementing Acts is provided below. For further information on reporting entities and their responsibilities, please consult the Agency’s Requirements for the registration of Registered Reporting Mechanisms (RRM). For further information on the Agency’s understanding of the definition of market participant, please consult the ACER Guidance on the application of REMIT.

1. Wholesale energy products concluded at an organised market place

According to Article 6(1) of the Implementing Acts, market participants shall report details of wholesale energy products executed at organised market places including matched and unmatched orders to the Agency through the organised market place concerned, or through trade matching systems or trade reporting systems. The organised market place where the wholesale energy product was executed or the order was placed shall, at the request of the market participant, offer a data reporting agreement.

This provision covers the reporting of transactions, including orders to trade, executed at organised market places related to the following wholesale energy products:

a) standard supply contracts;

b) contracts relating to the transportation of electricity or natural gas concluded between market participants on secondary markets (physical or financial capacity rights or obligations) including resale and transfer of such contracts; and

c) derivative contracts (unless already reported under Article 9 of Regulation (EU) No. 648/2012’ ‘EMIR’ or other EU financial markets legislation).

2. Transportation contracts

Primary allocation contracts: TSOs or third parties on their behalf shall report details of contracts relating to the transportation of electricity or natural gas concluded as a result of a primary explicit capacity allocation by or on behalf of the TSO (physical or financial capacity rights or obligations), including matched and unmatched orders (Article 6(2) of the Implementing Acts).

Secondary transportation contracts: The reporting obligation for secondary transportation contracts applies to the involved market participants. In line with Article 6(1) of the Implementing Acts, market participants shall report details of secondary transportation contracts executed at organised market places including matched and unmatched orders to the Agency through organised market places concerned, or through a trade matching or trade reporting system, which is registered as an RRM. Secondary transportation contracts which have been concluded outside and organised market shall be reported by the market participants or third parties on their behalf (Article 6(3) of the Implementing Acts).

3. Wholesale energy products reported in accordance with EMIR or other EU financial markets legislations

According to Article 6(4) of the Implementing Acts, information in relation to wholesale energy products which have been reported in accordance with Article 26 of Regulation (EU) No 600/2014[1] or Article 9 of Regulation (EU) No 648/2012 shall be provided to the Agency by:

a) trade repositories referred to in Article 2 of Regulation (EU) No 648/2012;

b) approved reporting mechanisms referred to in Article 2 of Regulation (EU) No 600/2014;

c) competent authorities referred to in Article 26 of Regulation (EU) No 600/2014; or

d) the European Securities and Markets Authority.

Furthermore, according to Article 6(5), where persons have reported details of transactions in accordance with Article 26 of Regulation (EU) No 600/2014 or Article 9 of Regulation (EU) No 648/2012, their obligations in relation to reporting under REMIT shall be considered as fulfilled.

It is important to note that the financial legislation does not prescribe the reporting of orders to trade. Hence, the latter are not covered by Article 6(4) and 6(5) of the Implementing Acts and shall, in principle, be reported in accordance to Article 6(1) of the Implementing Acts (see above).

Clarification on the reporting of derivatives contracts

According to the Implementing Acts, the following derivatives contracts shall be reported to the Agency:

1. options, futures, swaps and any other derivatives of contracts relating to electricity or natural gas produced, traded or delivered in the Union (Article 3(1)(a)(viii));

2. options, futures, swaps and any other derivatives of contracts relating to the transportation of electricity or natural gas in the Union (Article 3(1)(b)(iii)).

The Implementing Acts also provide that where persons have reported details of transactions in accordance with Article 26 of MiFIR or Article 9 of EMIR, their obligations in relation to reporting those details under REMIT shall be considered as fulfilled. However, subject to the agreement of organised markets, trade matching or reporting systems, that information may be reported directly to the Agency.

Therefore, information on derivatives reportable under EMIR and MiFIR may either be made available to the Agency in the EMIR / MiFIR format or reported directly to the Agency in the REMIT format, that is in accordance with Table 1 of Annex I of the Implementing Acts as regards contracts referred to in Article 3(1)(a)(viii) and Tables 3 or 4 as regards contracts referred to in Article 3(1)(b)(iii).

Furthermore, derivatives contracts covered by the Implementing Acts, but not reportable under EMIR or MiFIR (e.g. in a case of market participants not established or resident in the Union and not reporting those derivatives under EMIR or MiFIR), shall be reported in accordance with Table 1 of Annex I of the Implementing Acts as regards contracts referred to in Article 3(1)(a)(ix) and Tables 3 or 4 as regards contracts referred to in Article 3(1)(b)(3).

For derivatives not reported under EMIR, including those that are reported under non-EU regulations but still reportable under REMIT, market participants shall refer to this manual on how to report transactions to the Agency. For example, if a U.S. counterparty enters into a transaction on a derivative admitted to trade at an exchange within the EU, most likely the U.S. firm reports that transaction under the U.S. Dodd Frank Act to the U.S. authorities. However, since the firm traded a wholesale energy product as defined in REMIT, the person is a REMIT market participant and must report that transaction to the Agency in order to comply with REMIT.

When a person only enters into transactions on derivatives traded outside the European Union that are only for financial settlement even though they are related to EU electricity or natural gas (for example a future or a swap that can only be financially settled) that person should not be considered a REMIT market participant and should not report those transactions, unless that person also enters into transactions, including the placing of orders to trade, in one or more wholesale energy markets.

For example, if a person enters into a transaction on a derivative contract related to EU gas and electricity (such as a futures contract only for financial settlement that is traded on exchange located outside the EU), that person will not be considered a REMIT market participant.

Another example is when a person enters into a transaction on an exchange traded (or bilaterally) financial swap on two floating gas prices for two monthly contracts i.e. (1) EU Natural Gas Futures contract and (2) U.S. Henry Hub Natural Gas Futures contract of the corresponding contract month, traded outside the EU, that person will not be considered a REMIT market participant.

However, if that person also enters into transactions, including the placing of orders to trade, in one or more wholesale energy markets, e.g. enters on a physical trade (or derivative) for the delivery of gas or electricity (or transportation of gas or electricity) within the EU, that person is a market participant and has to report all the transactions on wholesale energy products including those trades outside the EU that are only for financial settlement.

If a person trades only REMIT-related financially-settled derivative contracts traded at organised market places outside the EU, that person is not a market participant and should not report those transactions.

 

4. Wholesale energy products concluded outside an organised market place

Under Article 6(3) of the Implementing Acts, market participants or third parties acting on their behalf shall report details of supply contracts (whether standard or non-standard), derivatives contracts, and transportation contracts concluded outside an organised market.

This is, therefore, the only instance where trade data may be reported by market participants themselves. However, the reporting may also be delegated to third parties.

If a market participant is unsure if they are responsible for reporting specific transactions, please seek legal advice or contact us by e-mail at remit@acer.europa.eu.

Market participant registration

All market participants entering into transactions which are required to be reported to the Agency in accordance with Article 8(1) of REMIT are required to register with the competent NRA in accordance with Article 9 of REMIT. Market participants can seek information on the registration process here:

http://www.acer.europa.eu/remit/MARKET_PARTICIPANTS/Registration/Pages/default.aspx

The Agency will establish a European registry of market participants based on the national registers of market participants provided to the Agency by NRAs.

In their registration form, market participants must inform the Agency whether or not they wish to rely on third party RRMs reporting on their behalf and if so, identify the relevant RRM. This includes the organised market place or third party on which the market participant relies for the reporting of records of transactions, including orders to trade.


[1] Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, p. 84)

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