Regulator investigates Dutch power market insider trading

LONDON (ICIS)–Dutch market regulator ACM has launched an investigation into possible insider trading on the electricity market, ACM announced on Tuesday.

Late last month, the regulator raided the offices of one company to uncover whether it had accurately released insider information. It is still unclear whether this relates to the timing or the type of information published.

Under REMIT, EU regulation for energy market trading, ACM is required to conduct an investigation into any possible misconduct.

“By monitoring compliance with REMIT, we want to prevent market abuse and contribute to ensuring that market players have confidence in how the energy market works,” said ACM’s energy director, Remko Bos.

A spokesperson for ACM told ICIS that they could not provide more information on the timeline of the enquiry. “That also depends on what we encounter,” the spokesperson said.

In case the investigation finds the company is guilty of insider trading then ACM could possibly enforce some type of penalty, the regulator said.

Higher leads

A report published last month reveals that the number of leads into market misconduct that ACM received rose to almost 50 in 2018, the highest number in recent years.

The regulator has also given advice to several market participants on correctly putting out insider information, under article 4 of REMIT, according to the report.

This is the first time the regulator has initiated a probe into Dutch electricity trading.

One trader active on the market said that insider trading was, “always a possibility when so few actors have big market shares.”