Energy traders will get three months extra to prepare for reporting electricity and natural gas trades under an EU regulation aimed at preventing insider trading and market manipulation, several market sources said on Wednesday.
Up until know it was understood the reporting of standardised trades would begin six months after the European Commission publishes the implementing acts for the Regulation of Wholesale Energy Markets Integrity and Transparency (REMIT).
The implementing acts are drawn up to make sure a regulation is uniformly applied by EU member states.
But sources close to the matter said that the latest draft of the acts say reporting will begin nine months after the acts are published. The commission did not confirm this information. But if correct, this would mean the reporting of trades – essentially anything traded over-the-counter or on exchanges – will kick off in August or September next year.
Several sources said the time it will take to build the infrastructure needed for trade reporting has been the driver of the extension to nine months.
The Agency for the Cooperation of Energy Regulators has committed to publish guidance on how to become a party that reports trades on others’ behalf at the same time as the acts. The agency also expects to open registration for these third parties three months after the acts come out. On top of this, registration will need to be opened for market participants too.
The sources also said phase two of reporting will start 15 months after the acts are published, rather than the 12 months initially envisaged.
A Commission spokeswoman said the EU executive body intends to publish the acts in the EU’s official journal during December. Once this happens, the acts will come into force 20 days later. This will be when the exact date for reporting will firm. Some day in August or September looks most likely.
Publication of the acts has been delayed several times. The commission had expected to publish them at the start of the summer, with market participants starting to report in late December 2014, or early January 2015. But the date for publication was subsequently pushed back to the autumn ( see EDEM and ESGM 10 June 2014 ), and then extended into the winter. Fionn O’Raghallaigh