3.2 Who shall report?
In accordance with Article 8 of REMIT, market participants, or a person or authority on their behalf, shall provide the Agency with a record of wholesale energy market transactions, including orders to trade. Reporting obligations cover:
- a) market participants, which means any person, including transmission system operators, who enters into transactions, including orders to trade, in one or more energy markets. Entities entering into transactions via third parties (e.g. via a Direct Market Access service) are also considered market participants;
- b) third parties acting on behalf of market participants (e.g. OMP members offering a Direct Market Access service);
- c) trade reporting systems;
- d) organised market places, trade matching systems or other persons professionally arranging transactions;
- e) trade repositories registered or recognised under Regulation (EU) No 648/2012 (EMIR);
- f) competent authorities which have received the information in accordance with Article 25(3) of Directive 2004/39/EC (MiFID) or ESMA when received in accordance with Regulation (EU) No 648/2012 (EMIR).
Market participants should bear in mind that the meaning of ‘entering into a transaction’ under EMIR is different than under REMIT. In the latter case, it refers to entering into a transaction in ‘wholesale energy markets’ and not to being a counterparty to the contract, such as CCPs or clearing members.
The Agency expects that market participants under REMIT may enter into transactions:
- a. acting on their own account and on their own behalf (pure principal transaction – i.e. on the decision of the firm);
- b. acting on their own account and on behalf of a client – i.e. on the order of other market participant; and/or
- c. acting on the account and on behalf of a market participant (pure agency transaction)
- d. acting on a third entity’s account and on their own behalf
The REMIT Implementing Regulation establish uniform rules on the reporting of transaction data and specify the reporting channels. An overview of the relevant provisions of the REMIT Implementing Regulation is provided below. For further information on reporting parties and their responsibilities, please consult the Agency’s Requirements for the Registration of Registered Reporting Mechanisms (RRMs). For further information on the Agency’s understanding of the definition of market participant, please consult the ACER Guidance on the application of REMIT.
3.2.1 Wholesale energy products concluded at an organised market place
According to Article 6(1) of the REMIT Implementing Regulation, market participants shall report details of wholesale energy products executed at organised market places, including matched and unmatched orders, to the Agency through the organised market place concerned, or through trade matching systems or trade reporting systems. The organised market place where the wholesale energy product was executed or the order was placed shall, at the request of the market participant, offer a data reporting agreement.
This provision covers the reporting of transactions, including orders to trade, executed at organised market places related to the following wholesale energy products:
a) standard supply contracts;
b) contracts relating to the transportation of electricity or natural gas concluded between market participants on secondary markets (physical or financial capacity rights or obligations) including resale and transfer of such contracts; and
c) derivative contracts (unless already reported under Article 9 of Regulation (EU) No. 648/2012’ ‘EMIR’ or other EU financial markets legislation)
3.2.2 Transportation contracts
Primary allocation contracts: TSOs or third parties on their behalf shall report details of contracts relating to the transportation of electricity or natural gas concluded as a result of a primary explicit capacity allocation by or on behalf of the TSO (physical or financial capacity rights or obligations), including matched and unmatched orders (Article 6(2) of the REMIT Implementing Regulation).
Secondary transportation contracts: The reporting obligation for secondary transportation contracts applies to the involved market participants. In line with Article 6(1) of the REMIT Implementing Regulation, market participants shall report details of secondary transportation contracts executed at organised market places including matched and unmatched orders to the Agency through organised market places concerned, or through a trade matching or trade reporting system, which is registered as an RRM. Secondary transportation contracts which have been concluded outside and organised market shall be reported by the market participants or third parties on their behalf (Article 6(3) of the REMIT Implementing Regulation).
3.2.3 Wholesale energy products reported in accordance with EMIR or other EU financial markets legislations
According to Article 6(4) of the REMIT Implementing Regulation, information in relation to wholesale energy products which have been reported in accordance with Article 26 of Regulation (EU) No 600/2014[1] or Article 9 of Regulation (EU) No 648/2012 shall be provided to the Agency by:
a) trade repositories referred to in Article 2 of Regulation (EU) No 648/2012,
b) approved reporting mechanisms referred to in Article 2 of Regulation (EU) No 600/2014;
c) competent authorities referred to in Article 26 of Regulation (EU) No 600/2014; or
d) the European Securities and Markets Authority.
Furthermore, according to Article 6(5), where persons have reported details of transactions in accordance with Article 26 of Regulation (EU) No 600/2014 or Article 9 of Regulation (EU) No 648/2012, their obligations in relation to reporting under REMIT shall be considered as fulfilled.
As stipulated in Recital (6) of the REMIT Implementing Regulation, in order to avoid double reporting, the Agency should collect details of derivatives relating to contracts for the supply or transportation of electricity or natural gas which have been reported in accordance with applicable financial regulation to trade repositories or to financial regulators from those sources. Notwithstanding this, organised markets, trade matching or reporting systems, who have reported details of such derivatives under financial rules, subject to their agreement, should be able to report the same information also to the Agency.
It is important to note that the financial legislation does not prescribe the reporting of orders to trade. Hence, the latter are not covered by Article 6(4) and 6(5) of the REMIT Implementing Regulation and shall, in principle, be reported in accordance with Article 6(1) of the REMIT Implementing Regulation (see above).
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Clarification on the reporting of derivatives contracts According to the REMIT Implementing Regulation, the following transactions, including orders to trade on derivatives contracts shall be reported to the Agency: 1. Options, futures, swaps and any other derivatives of contracts relating to electricity or natural gas produced, traded or delivered in the Union (Article 3(1)(a)(viii)), 2. Options, futures, swaps and any other derivatives of contracts relating to the transportation of electricity or natural gas in the Union (Article 3(1)(b)(iii)). The REMIT Implementing Regulation also stipulates that where persons have reported details of transactions in accordance with Article 26 of MiFIR or Article 9 of EMIR, their obligations in relation to reporting those details under REMIT shall be considered as fulfilled. However, subject to the agreement of organised markets, trade matching or reporting systems, that information may be reported directly to the Agency. Therefore, information on derivatives reportable under EMIR and MiFIR may either be made available to the Agency in the EMIR / MiFIR format or reported directly to the Agency in the REMIT format, that is in accordance with Table 1 of Annex I of the REMIT Implementing Regulation as regards contracts referred to in Article 3(1)(a)(viii) and Tables 3 or 4 as regards contracts referred to in Article 3(1)(b)(iii). Furthermore, derivatives contracts covered by the REMIT Implementing Regulation but not reportable under EMIR or MiFIR (e.g. where market participants are not established or resident in the Union and are not reporting those derivatives under EMIR or MiFIR) shall be reported in accordance with Table 1 of Annex I of the REMIT Implementing Regulation as regards contracts defined in Article 3(1)(a)(viii) and in accordance with Tables 3 or 4 as regards contracts referred to in Article 3(1)(b)(iii). For derivatives not reported under EMIR, including those that are reported under non-EU regulations but still reportable under REMIT, market participants shall refer to this manual on how to report transactions to the Agency. For example, if a U.S. counterparty enters into a transaction on a derivatives contract related to a wholesale energy product admitted to trade at an exchange within the EU, most likely the U.S. firm reports that transaction under the U.S. Dodd- Frank Act to the U.S. authorities. However, since the firm traded a wholesale energy product as defined in REMIT, the person is a REMIT market participant and in case such a wholesale energy product relates either to the supply of electricity or natural gas with delivery in the Union or to the transportation of electricity or natural gas in the Union, that person must report that transaction to the Agency in order to comply with REMIT. |
3.2.4 Contracts related to wholesale energy products concluded outside an organised market place
Under Article 6(3) of the REMIT Implementing Regulation, market participants or third parties acting on their behalf shall report details of supply contracts (whether standard or non-standard), derivatives contracts, and transportation contracts concluded outside an organised market.
This is, therefore, the only instance where transaction data may be reported by market participants themselves. However, the reporting may also be delegated to third parties.
If a market participant is unsure if they are responsible for reporting specific transactions, please seek legal advice or contact the Agency via the REMIT Query Form available in the REMIT Documents section of the ACER website.
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Market participant registration All market participants entering into transactions which are required to be reported to the Agency in accordance with Article 8(1) of REMIT are required to register with the competent NRA in accordance with Article 9 of REMIT. Market participants can seek information on the registration process here: https://www.acer-remit.eu/portal/ceremp The Agency has established the Centralised European Register of Energy Market Participants (CEREMP) based on the national registers of market participants provided to the Agency by NRAs. In the registration form, market participants must inform the Agency whether or not they wish to rely on third party RRMs reporting on their behalf and if so, identify the relevant RRM. This includes the organised market place or third party on which the market participant relies for the reporting of records of transactions, including orders to trade. |
[1] Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, p. 84)