The 7th Annual Energy Trading Enforcement Forum (ETEF) brought together over 75 representatives from the EU Agency for the Cooperation of Energy Regulators (ACER), the European Securities and Markets Authority (ESMA), energy National Regulatory Authorities (NRAs), and financial National Conduct Authorities (NCAs) to strengthen cooperation and alignment in the oversight of energy and financial markets.
The forum, recognized as a key platform for fostering collaboration, addressed pressing issues such as the revised Regulation on Wholesale Energy Market Integrity and Transparency (REMIT), the intersection of energy and financial market abuse cases, and the increasing role of artificial intelligence (AI) in trading activities.
Strengthening Regulatory Frameworks and Collaboration
The regulatory landscape for energy and financial markets is shaped by two overarching EU frameworks: REMIT, which governs the integrity and transparency of wholesale energy markets, and the Market Abuse Regulation (MAR), which targets market manipulation and insider trading.
ETEF serves as a critical forum for energy and financial regulators, as well as EU agencies like ACER and ESMA, to exchange insights on supervision and enforcement strategies, ensuring a unified approach to protecting EU consumers and businesses from market abuse.
Revised REMIT Regulation Takes Center Stage
The forum highlighted the recent revisions to the REMIT Regulation, effective May 7, 2024. These updates introduce:
Closer alignment of energy market transparency and integrity provisions with financial market regulations.
Enhanced powers for ACER, including investigatory and enforcement authority in cross-border cases.
Strengthened cooperation between energy and financial regulators to improve the detection, prevention, and enforcement of market abuse rules.
This enhanced framework is designed to provide more robust protection for EU citizens and businesses while ensuring greater market integrity.
Joint Oversight of Energy and Financial Markets
Discussions underscored the complexity of cases that fall under both REMIT and MAR, particularly those involving wholesale energy products classified as financial instruments. The forum reinforced principles for effective collaboration among national and European authorities, emphasizing the importance of seamless coordination to address such dual-framework cases.
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