TITREPublic Workshop on REMITLjubljana, 19 July 2012

Public consultation document on ACER recommendations on REMIT records of transactions and implementing acts

Volker ZulegerSeconded National Expert

Outline

. Introduction

.Draft Recommendations on Article 8(1) of REMIT

.Draft Recommendations on Article 8(2) - (4) of REMIT

.Draft Recommendations on Article 8(5) - (6) of REMIT

. The way ahead

. The Agency may make recommendations to the Commission as to the records of transactions, including orders to trade, according to Article 7(3) of REMIT

. Scope of records of transactions depends on other specificities of the implementing acts, discussion paper therefore addresses all aspects of implementing acts

. Close coordination with ESMA on both content (records of transactions data fields) and timing of public consultations

Introduction

Outline

.Background

.Draft Recommendations on Article 8(1) of REMIT

.Draft Recommendations on Article 8(2) - (4) of REMIT

.Draft Recommendations on Article 8(5) - (6) of REMIT

. The way ahead

.Lack of definitions in REMIT and need to clarify definitions for the understanding of data collection and reporting obligations

.Proposal of definitions inter alia for “contract”, “standardized and non-standardized contract”, “agreement”, “transaction”, “order to trade”, “trade”, “supply”, “transportation”, “market participant subject to reporting obligation”, “derivative” etc.

Proposal of Definitions

.Content of the records of transactions organized as follows: a. parties of the contract, b. contract type, and c. details on the transaction (EMIR role model)

.Reporting of life-cycle information: a. orders to trade (for standardized contracts), b. execution, c. confirmations, amendments, cancellations and clearing or scheduling/nomination information

. Interoperability of unique identifier for reporting, i.e. either “ACER code”, EIC, BIC, GS1/GLN or LEI code

Proposal for Records of transactions

Proposal for Records of transactions

.Records of transactions, including orders to trade, for standardized (list of 39 fields) and non-standardized contracts (list of 29 fields) in Annex II of the draft recommendations paper

.Taking into account experiences and developments in EU financial market legislation (MiFID, EMIR, MiFID review)

.Parallel consultation of ESMA on EMIR data collection with main differences relating to different scope of data collection (transactions and orders to trade and derivatives and commodities under REMIT

Outline

.Background

.Draft Recommendations on Article 8(1) of REMIT

.Draft Recommendations on Article 8(2) - (4) of REMIT

.Draft Recommendations on Article 8(5) - (6) of REMIT

. The way ahead

.Broad definition of list of contracts to be reported in the implementing act

.Possibility for ACER to establish a database for a list of standardized contracts on its website (MiFID model)

.Exclusion of balancing markets from data collection through ACER in initial phase of data collection (but collection possible through NRAs)

.Proposal of phased approach of data collection depending on listing of a contract on ACER website (comparable to ACER “white, grey and black lists” of DG ENER consultants)

Proposal for list of contracts

Proposal for de minimis rule

.Three options for de minimis rule proposed:

.Option A: No de minimis, but definitions and list of contracts

. Option B: Threshold for small producers with an overall capacity of up to 2 MW

.Option C: de minimis for contracts for the sale of renewable energy sources at regulated tariffs

Proposal for uniform rules on reporting

.Reporting of standardized contracts through RRMs, including the possibility for market participants to become RRM

.Reporting of non-standardized contracts directly to ACER

Proposal for timing and form of reporting• Reporting of transactions, including orders to trade,

in standardized contracts through RRMs „as quickly as possible, and no later than the following working day following the execution, modification or termination of the transaction“

• Reporting of transactions in non-standardized contracts within one month following the execution of the transaction

Proposal for avoidance of double reporting

Proposal for reporting channels

• Reporting through RRMs, i.e. in particular through organised market places and trade repositories, trade matching, trade reporting systems or other RRMs reporting on behalf of market participants (e.g. TSOs, market participants)

• Requirements for RRMs to have adequate policies and arrangements in place to report the information (FSA model)

Outline

.Background

.Draft Recommendations on Article 8(1) of REMIT

.Draft Recommendations on Article 8(2) - (4) of REMIT

.Draft Recommendations on Article 8(5) - (6) of REMIT

. The way ahead

Proposal for reporting of regulated information

• Regulated information includes inside information and transparency information to be published pursuant to Regulations (EC) No 714/2009 and (EC) No 715/2009

• Reporting of inside information through Regulated Information Services (RIS) (FSA model), i.e. platforms for the disclosure of inside information from organised market places and TSOs, reporting of transparency information through existing reporting channels (TSOs)

• No direct reporting of market participants to ACER, but through RIS or existing platforms according to Regulations (EC) No 714/2009 and (EC) No 715/2009

• Similar technical requirements for RIS than for RRMs

Outline

.Background

.Draft Recommendations on Article 8(1) of REMIT

.Draft Recommendations on Article 8(2) - (4) of REMIT

.Draft Recommendations on Article 8(5) - (6) of REMIT

. The way ahead

ACER Recommendations on REMIT Record of Transactions and Implementing Acts

Timeline21 June- 31 July 2012

Public Consultation

19 July 2012 Public Workshop

Sept 2012Recommendations submitted to the European Commission

Discussion

Thank you for your

attention

Thank you for your attention!

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