Research European Commodity Market Regulations - Part 1 | Page 21

European Energy Market Regulations V3.1

-

-

A “hedge marker” to be placed on all trades in the source system. In some cases, a rule could
be used to derive this, for example if all hedges are in specific portfolios. In other cases, they
will need to be marked manually.
It is import to have mechanism in place that can deduce whether a trade has been executed
on an MTF. The list of MTFs keeps changing, and this must be factored into the solution
Furthermore for some trades executed via brokers it may be difficult to determine the place
of execution in the first place. Expect the recent FCA ruling to be modified as well.

Similarly, with REMIT, it will be necessary to have a flexible mechanism in place in order to
determine which trades to cover.
Changing requirements
As market participants get closer to go live and further into their projects, more detailed issues are
emerging. At the same time, messages from regulators repositories and others give rise to changes
and intricacies.
It is important to keep a close eye on developments. This can be accomplished over various forums
including the website www.enegrytradingregulation.com and via updates to this report through
time.

Advertisement

© Commodity Technology Advisory LLC and ETR Advisory Ltd, 2013, All Rights Reserved.

v3.1

November 13th, 2013

21