Research European Commodity Market Regulations - Part 2 | Page 10

European Energy Market Regulations – Survey Results

Derivatives
When it comes to having a mechanism in place to tell if a trade is considered a “derivative” and whether
it is traded via an MTF, as per the recent FCA ruling, there is less preparedness with only 39% saying yes,
39% saying no and the remainder indicating they do not know if they have such a mechanism in place.

Potential Position Reporting Under MiFiD2
While naturally much focus is on EMIR and REMIT regulations and preparedness, MiFiD2 may also have
an impact on the industry. When we asked about awareness of the potential position-reporting
requirement under MiFiD2, only 22% of those answering the question said that they were aware and 88%
were not.

Trade Monitoring Under REMIT
Our respondents were also split on whether they were obligated to implement trade-monitoring
software or processes under REMIT. It would appear many are still trying to determine this, with 35% of
those who answered the question saying that they did not know. Around 22% felt that they were not
obligated with the remaining 43% believing that they were. Of those, 40% stated that they would
implement trade surveillance by business process and policy only and the other 60% would include a
software solution. Its notable, however, that 73%