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FAQs on transaction reporting – Question II.2.4.11

How to report in REMIT report case where OMP XXX will remove a trade (standard contract) where a buy order was wrongly submitted and market participant has contacted us and asked for the trade to be removed? Other market participant which was a seller has been contacted and accepts the removal of the trade. In this case, where XXX makes the trade removal from the system, should the actionType be Error (cancellation of wrongly submitted report) or Cancel (a termination of an existing contract or order to trade)?

Practical example:

Market participant C has made an error while adding buy bid, bid was meant to be 45 MWh, but it went into trading system as of 450 MWh. There was already sell bid on the platform (Market Participant A 500 MWh), so bids were matched and trades made. Market participant C contacts us and tells there was a mistake and asks if we can remove the trade from the system. We contacted Market Participant A and told what has happened, and asked if the trade can be removed from the trading system. Market Participant A accepts that. There was also Market Participant B, who made buy bid of 50 MWh which was matched with market participant A’s sell bid. Figures below.

Orders:

  • Market Participant A: Sell bid 500 MWh à Order status: ACT – PMA (with 50 MWh) – MAC
  • Market Participant B: Buy bid 50 MWh à Order status: ACT – MAC
  • Market Participant C: Buy bid 450 MWh à Order: ACT – MAC

Trades:
1st trade

  • Market Participant A: Sell 50 MWh
  • Market Participant B: Buy 50 MWh

2nd trade

  • Market Participant A: Sell 450 MWh
  • Market Participant C: Buy 450 MWh

Both trades in trade 2 (450 MWh sell and 450 MWh buy) will be removed from the trading system by XXX, but orders remain as they are (those cannot be changed). How should this trade removal/cancellation be reported in REMIT report, especially Market Participant A´s order?

REMIT report correction:

For these Transaction timestamp: The time when trade has been removed and Action type: C (Cancel)

  • ORDER Market Participant C: Buy bid 450 MWh à
  • TRADE Market Participant A: Sell 450 MWh
  • TRADE Market Participant C: Buy 450 MWh

For this, does it need something for the correction?

  • Market Participant A: Sell bid 500 MWh à Order status: ACT – PMA (with 50 MWh) – MAC

Answer:

In the Agency’s view, when a trade is cancelled because ‘an order has been wrongly submitted to the trading system by a market participant’, the trade should be cancelled by using Action type “C”.

As the order is visible to the market, it should not be removed from the system and should be reported as an MAC or PMA order, even if it was erroneously submitted by a market participant. Then the trade will be first reported as New (Action type “N”) and then reported as Cancelled (Action type “C”).

For Action type “E” Error, in the TRUM it is explained that ‘when the report contains a cancellation of a wrongly submitted report, it will be identified as ‘error’. This means that Action type “E” for Error should be used when a transaction has been incorrectly sent to ARIS and needs to be removed from the database. Then, a new transaction should be submitted by using a different UTI.

However, the above question describes a case where the error occurs in the system of an OMP (as a result of their client’s mistake) and not in the reporting to ARIS, for example preparation of the file, extraction of data from the system, bugs etc.

Example:  if an OMP reports a trade with the price of 50 EUR instead of 50 GBP, that trade was incorrectly sent. The same applies if the real price is 50 and the OMP reports 35 (or any other price). Therefore, you would report an ‘Error’ transaction and resubmit is with the right price. This is not the case for your question.

Last update: 20/07/2018   RSS_Icon Subscribe to this Page’s RSS