Europex response to ACER’s public consultation on the “Proposed Changes to Electronic Formats for Transaction Data, Fundamental Data and Inside Information Reporting”

Brussels, 8 November 2017 | Europex welcomes the opportunity to take part in ACER’s public consultation on the Proposed Changes to Electronic Formats for Transaction Data, Fundamental Data and Inside Information Reporting. As a matter of principle, Europex supports the effort of ACER to enhance data quality for monitoring purposes and to implement a simplification of the reporting format. Despite these improvements, however, we would like to highlight that any change(s) to the already established reporting format will: create implementation costs which will be passed on to market participants and end consumers; increase system operation risks; potentially affect the reliability
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Categories: Consultation Responses.

Joint IETA, EFET, Europex and ISDA open letter to the Climate Change Committee Members and Experts on Brexit safeguard measures

Brussels, 15 November 2017 | In an open letter to the members and experts of the Climate Change Committee, the International Emissions Trading Association (IETA), the European Federation of Energy Traders (EFET), Europex and the International Swaps and Derivatives Association (ISDA) have expressed their views on the draft regulation amending the EU ETS Registry Regulation (Regulation No 389/2013). This draft regulation aims to implement safeguards to protect the EU ETS from potential negative effects of a hard Brexit. It aims at marking and making ineligible for compliance EU ETS allowances issued by the United Kingdom from 1 January 2018. IETA, EFET, Europex
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Categories: Position Papers.

Joint statement by EFET, Europex, FIA and LEBA: EFET and FIA develop an industry standard to facilitate position reporting under MiFID II

Brussels, 8 November 2017 |The European Federation of Energy Traders (EFET), FIA, Europex and LEBA are pleased to present the common EFET-FIA ITS4 schema for position reporting under the recast Markets in Financial Instruments Directive (MiFID II). The schema is available here: http://www.efet.org/Files/Documents/Market%20Supervision/MiFID%20II/Enhanced%20ITS4 %20schema_25092017_Definitive.zip. The EFET-FIA ITS4 schema is the result of close cooperation between EFET, FIA, Europex, LEBA and a number of trading venues. It builds upon the schema developed by the UK Financial Conduct Authority (FCA) on the basis of Implementing Technical Standard 4 (ITS4) drafted by the European Securities and Markets Authority (ESMA) and adopted by the
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Categories: Press Releases.

Updating and improving EMIR – Europex comments on Commission’s EMIR amendment proposal

Brussels, 13 October 2017 | Europex welcomes the European Commission’s recently tabled EMIR amendment proposal that is currently being discussed by the European Parliament and the Council. We strongly support its aim to simplify reporting obligations and improve data quality. We believe that the proposal takes the right approach by reducing the burden on Non- Financial Counterparties (NFCs) and smaller Financial Counterparties (FCs). We explicitly share the goal to increase transparency with respect to clearing and reporting. In the following, we would like to comment on four key aspects of the Commission’s proposal: 1. Single-sided reporting by Central Counter Parties (CCPs)
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Categories: Position Papers.

MiFID II: need for an equal regulatory treatment of Long-Term Transmission Rights (LTTRs) to enable an efficient regime for secondary trading

Brussels, 04 July 2017 | Europex supports the classification of Financial Transmission Rights (FTRs) as financial instruments under MiFID II. This helps fostering a well- functioning, efficient electricity markets and will ensure an efficient regime for secondary trading of FTRs. In addition, there is a significant need for more regulatory clarity as regards Physical Transmission Rights (PTRs) in order to create a level playing field for LTTRs. One of the objectives of the Capacity Allocation and Congestion Management Guideline (CACM GL) as well as the Network Code on Forward Capacity Allocation (NC FCA) is to optimise hedging opportunities for market participants,
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Categories: Position Papers.

VAT fraud – A persisting threat to gas, electricity and emissions trading. Need for a prolongation of existing derogation and an extension to all Member States

Brussels, 31 May 2017 | The VAT fraud in energy and emissions trading continues to pose a serious threat to European Exchequers and energy and emissions markets alike. The existing preventive mechanisms, like the derogations enabling Member States to implement a domestic reverse charge mechanism on gas, electricity and emissions transactions between taxable persons and taxable dealers as resellers, need to be continued and further extended. Active action must be taken by the European Commission, the Council of the EU and the relevant bodies at Member State level to protect energy and emissions trading from a repetition of large scale
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Categories: Consultation Responses.

Update: KIDs requirement under PRIIPs Regulation incompatible with wholesale energy trading

Brussels, 21 July 2016 | Europex believes that the requirements laid out in the PRIIPs Regulation and its accompanying RTS are incompatible with wholesale energy markets. In the present paper, which is an update on an earlier position paper, we explain why and focus on the following arguments: 1) KIDs add no value to professional wholesale energy trading 2) Wholesale energy trading is limited to professional wholesale traders 3) SRIs are inadequate for potential recipients of KIDs for ECTDs 4) Wholesale energy markets are monitored and regulated markets for professionals 5) MiFID II definition of professional clients as a main
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Categories: Position Papers.

Implementation of the MiFID II ‘Liquidity provider obligation’ for trading venues

MiFID II allows non-financial firms active in commodity derivatives markets to be exempted from the requirement to obtain a MiFID license if they satisfy certain conditions, including remaining below certain ancillary activity thresholds. The rationale of the ancillary activity tests is to check whether entities not subject to financial regulation should be required to acquire an authorisation due to the relative or absolute size of their activity in commodity derivatives, emission allowances and derivatives thereof. Article 2(4) of MiFID II permits a number of transaction types to be classified as “privileged transactions” and thus to be set aside for the
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Categories: Position Papers.

Europex responds to ACER public consultation on REMIT – Functioning and Usefulness of the European Register of Market Participants

Brussels, 22 April 2016 | Europex welcomes the opportunity to respond to ACER’s public consultation on the “Functioning and Usefulness of the European Register of Market Participants” under REMIT. While we generally support the proposal put forward by ACER to improve the quality and utility of the CEREMP data, we would like to highlight a number of concerns in reaction to Question 5 and Question 12 of the present consultation. Please find the consultation response attached.
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Categories: Consultation Responses.