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FAQs on transaction reporting – Question II.1.1.15

Reporting complete transaction, in this scenario:

  • 2 counterparties agree a bilateral trade, type standard contract, with hourly quantities for a delivery day several days ahead;
  • the agreed price is the X market place prices for this delivery day; prices issued by the X market place, only the day before the delivery day.

According to the ACER document “REMIT – Transaction Reporting User Manual”, §3.2.6, both counterparties report the trade only the day before the delivery day, once the prices are known (transaction complete). Is that correct?


Answer:

If two counterparties agree a bilateral trade, type standard contract, with hourly quantities for a delivery day several days ahead and they agree a “X market place price” for this delivery day when the price issued by the X market place is published the day before the delivery day, they should report the contract with the index which fixes the price (e.g. X market place prices) on a T+1 working day basis.

If the contract is a non-standard contract this has to be reported on aT+1 month basis and therefore by the time of the reporting the price and the quantity are known and the contract can be reported as a non-standard contract with Table 1 on a T+1 month basis.

Alternatively, if the market participants report the non-standard contract before the delivery and the publication of the price, the contracts can be reported in two phases: the non-standard contract with table 2 indicating the index which fixes the price (e.g. X market place prices) and an execution under that non-standard contract,  both on a T+1 month basis.

Last update: 16/02/2016   RSS_Icon Subscribe to this Page’s RSS