Research European Commodity Market Regulations - Part 1 | Page 18

European Energy Market Regulations V3.1 Implementing a trade reporting solution Solution types Every market participant is required to implement a trade reporting solution in some form. This may be very simple, for example uploading a trade spreadsheet to a repository, or it may require a large amount of engineering, for example for a multi-site market participant with several ETRMs. It is also possible to delegate the reporting to another party, or several parties. There are several different types of configuration available, which can be summarized by these levels: Level Delegated Key features Another party reports on the market participant’s behalf, This can either be as a specialized service or in some cases for a set of deals, for example, an exchange reporting all trades executed there, or pre trades for REMIT. Typical participant type Pros and cons + Less work for participant + Less prone to error Small traders, or as a partial solution for any type - No audit log for participant - Could be expensive. - Participant is still liable for errors + Easy to use for smaller traders Manual A manual spreadsheet/csv upload to a repository or reporting service. Some repositories will offer on screen trade entry. + Good way to send trades already in spreadsheets even for larger players - Lack of auditability Small participant with few trades or as a partial solution for larger participants - Prone to error + Less work for participant Outsourced Duty of reporting outsourced to another party. The party will either have the most of data already, or provide a simple mechanism to take the data The provider will perform some tasks such as data enrichment. Smaller traders that already execute most of their trades outside of their own environment. + Less prone to error - No audit log for participant - Could be expensive. - Participant is still liable for errors + More control Direct Sending the data directly to a repository, RRM and/or a reporting service. + Lower running cost - Could require a large project to set up Medium and larger participants - Requires in house expertise It is also possible to use a combination of these methods. For example, exchange traded deals could be sent by an exchange, and OTC ones via another route. © Commodity Technology Advisory LLC and ETR Advisory Ltd, 2013, All Rights Reserved. v3.1 November 13th, 2013 18