EU Regulations require market participants to report wholesale energy market contracts[1], including orders to trade, within the EU, to the Agency for the Cooperation of Energy Regulators (ACER). According to REMIT, the wholesale energy market encompasses both spot markets and derivative markets. The reporting obligation includes both exchange traded and OTC contracts.
REMIT Reporting Update
On November 16th, 2022, ACER published the updated ‘Transaction Reporting User Manual’, also known as TRUM, and its Annexes (specifically Annex II, III, V, and VII). The revisions introduced are primarily focused on clarifying the reporting obligations for Broker OMPs and for Market Participants entering transactions on wholesale energy markets via Direct Market Access (DMA). The resulting updated TRUM document, referred to as version 5.1, introduces updates to both the allowable values for certain fields and the revised validation rules around these reportable fields.
Organized Market Places (OMPs)[2] and RRM’s (Registered Reporting Mechanism)[3] registered with ACER, will update their respective REMIT reporting services to comply with latest reporting logic, where files will be generated using the new reporting logic to send to ACER. Market participants should obtain the revised reporting process guidance from their respective RRM, if they have elected for one.
Essentia is in a position where we can add value immediately as soon as you are ready to have a conversation. Whether you’re in the “I didn’t know this was happening” category of firms or the “We’ve started the work, but wondering how we can move forward more quickly” category, Essentia can help you through any situation. For questions and one-on-one consultations about how Essentia can help your organization, please contact us.
That’s a wrap for part-1 of this blog series. Stay tuned for part-2, in which key impacts and dates requiring action by firms like yours will be detailed.
[1] The list of contracts to be reported is defined in Article 3 of the REMIT Implementing Regulation.
[3] RRMs are organized market places, trade matching and trade reporting systems, including trade repositories, as well as the ENTSOs (European Network of Transmission System Operators for Electricity) for the reporting of fundamental data.
[2] Energy and derivative exchanges, MTFs, OTFs and brokers, are examples of organized market places where many-to-many trading can occur.
About Essentia
Essentia is a Houston-based consulting firm focused on partnering with energy and commodity trading companies to help them maximize their return on investment from trading systems & technologies. Since our founding in 2016, our team has grown to 85 full-time consultants who have, as Essentia, implemented or upgraded Energy Trading & Risk Management (ETRM) solutions at more than two dozen companies across North America. With an experience-laden team and hyper-focus on the client, we are proud of our record of taking clients From Start to Success and our impressive client satisfaction, as demonstrated by subsequent engagements with many of our clients.
Rahim Kabani, Director, Essentia Advisory Partners
Rahim Kabani is a director at Essentia Advisory Partners where he heads our Regulatory Compliance Advisory service. He has over 15 years of derivatives trading & regulatory compliance experience spanning multiple jurisdictions. Email: rkabani@essentiaap.com
