Research European Commodity Market Regulations - Part 1 | Page 7

European Energy Market Regulations V3.1

Some of the new capital calculation rules could well apply to energy traders, although probably not
until 2017. However, these are yet another set of rules that should be on Energy Traders’ radars.

The EU “Third Package” and REMIT
The European Union third package was adopted in 2009. It aimed to further open up Europe’s gas
and power markets using several means including unbundling previously vertically integrated gas
and power companies, the move to standardize TSOs, and the creation of a single market.
As part of this framework, the Regulation of Wholesale Markets Transparency and Integrity (REMIT)
aims to increase transparency within the market, by the prohibition of insider trading, and aims to
further limit market abuse.
The prohibition of market abuse involves not only avoiding attempted and actual market
manipulation, but also reporting trade and “fundamental” data to the authorities.
REMIT applies to all wholesale physical Gas, Power, LNG and Emission trading in Europe as well as to
connected derivatives.

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

v3.1

November 13th, 2013

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