Reports EU Regulations REMIT Reporting Services & Solution | Page 19

REMIT Reporting Services and Solutions - July 2015 updated March 2016 4.12 Schemas and Receipts ACER is defining standard XML schemas for sending data of each type to ARIS. These cover the four formats in which trades and orders are to be sent, formats for fundamental data, and others. In addition, a standard “receipt” is defined. This contains information about the status of a data transmission, in a standard form. The idea is that RRMs and others pass these standard receipts back to the market participant, who in turn can use it for reconciliation. This standardisation of response makes the design of software and systems much easier for REMIT than it was for EMIR, since each RRM essentially returns status in the same format. There is not yet a standard data format that is in widespread use across competing systems in the energy-trading world, in the same way the FIX or FpML are used in the financial world. “ACER XML”, as it is known, is likely to become that standard. Many RRMs have already announced that they will accept data in this format from market participants, and several OMPs are offering data downloads in ACER XML. There is therefore the distinct possibility that ACER XML will become the de facto data exchange format used across systems for all of these types of data. 4.13 Standard vs. non-standard, formats and phases REMIT defines two distinct classes of trade for reporting: “Standard” and “Non – Standard”. Implementing Act defines these as follows (Article 2(2, 3)): The REMIT ‘standard contract’ means a contract concerning a wholesale energy product admitted to trading at an organised market place, irrespective of whether or not the transaction actually takes place on that market place;” ‘Non-standard contract’ means a contract concerning any wholesale energy product that is not a standard contract; So a standard contract is any contract on a venue, or any contract that “looks like” a contract on a venue. At the same time, the TRUM provides 4 different formats for reporting orders and trades:     Format 1 – “Standard supply contracts” Format 2 – “Nonstandard supply contracts” Format 3 – Electricity transportation contracts Format 4 – Gas transportation contracts Each format contains a different number of fields (with format 1 containing the most at 58). These are all outlined in the REMIT Implementing Act and fully described in the TRUM. Format 4 is in fact the EDIGas 5.1 XML standard and is outlined in a more detailed REMIT manual to be found on the EDIGas web site. Note that for formats 3 and 4, market participant are only required to report secondary trades. Primary trades/allocations are to be reported by the system operator. The TRUM states the following: “Details of transactions executed within the framework of non-standard contracts specifying at least an outright volume and price shall be reported using Table 1 of the Annex to the Implementing Acts” The TRUM goes on to outline how this may work as follows: “With regard to “specifying at least an outright volume and price”, the Agency understands that once the volume and the price of the transaction is known to the two parties (which can occur after the delivery of the commodity), the transaction is complete. There is little difference between a physical spot/forward contracts traded at an organised market place with a price settled against an index and an execution under non-standard contract framework, which settles days after the delivery of the energy commodity, ends. In fact, both of these two contracts may not have a fixed price or volume before the delivery of the energy commodity starts and, most likely, both of them will be completely settled after the delivery period ends. Copyright 2016 – ETR Advisory Ltd