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ACER looks to form group on energy derivatives

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By Fionn O'Raghallaigh on 21-Jul-2015

EU regulators agency ACER is looking for people to form an ad-hoc expert group on energy commodity derivatives.

This is hardly surprising given how difficult defining energy derivatives has become, and the even harder part of understanding which EU legislation an energy derivative or physical forward falls under.

The group will advise the agency on any recommendations ACER makes to the European Commission, and on the interaction of EU energy legislation and financial market legislation.

ACER has already expressed concern that ESMA’s advice to the commission on physical forwards could reduce liquidity in EU energy markets. So getting an ad-hoc group to help it is probably wise given the increasing overlap between EU energy and financial market legislation, and what that mean for ACER.

You can find more details here.