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)
Read More

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,
Read More

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
Read More

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
Read More

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
Read More

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.
Read More

Categories: Consultation Responses.

Europex response to ESMA consultation on Benchmark Regulation

Brussels, 31 March 2016 | In our response to the latest ESMA consultation on the Level 2 legislation for the EU Benchmark Regulation, Europex emphasises the need to consider commodity-specific aspects. Particularities of prices and data availability should be acknowledged when categorising commodity benchmarks. Europex further calls for a proportionate approach, leaving some flexibility to the administrators – where appropriate. Please find the whole response attached.
Read More

Categories: Consultation Responses.

KIDs requirement under PRIIPs Regulation incompatible with wholesale energy trading

Brussels, 9 March 2016 | Given the latest draft of the Regulatory Technical Standards (RTS) on the layout of the Key Information Documents (KIDs) introduced by the Regulation on Packaged Retail and Insurance-Based Investment Products (PRIIPs Regulation), it seems that the scope may have been unintentionally changed and is now affecting also energy markets. With this position paper, Europex would like to express its concerns regarding this new development. While we support the Commission’s objective of improving the ability of retail investors to compare products and understand their features, we would like to highlight that the laid out requirements are
Read More

Categories: Position Papers.

MiFIR/MAR: AII as an alternative to ISIN and the need to align the timing of the application of the ISIN obligation under MiFIR and MAR

Brussels, 4 March 2016 | ESMA’s current draft of the Regulatory Technical Standard (RTS) 231, inter alia specifying Article 3(1) of the Market in Financial Instrument Regulation (MiFIR), puts forward the obligation that each trading venue shall obtain an International Standards Organisation (ISO) 6166 International Securities Identification Number (ISIN) for each financial instrument. Europex does not agree with this obligation and calls for the reintroduction of Alternative Instrument Identifiers (AIIs) as a better adepted solution. In addition, Europex urges a postponement of the obligation to provide financial instrument reference data under MAR (Article 4) along with the corresponding requirement under
Read More

Categories: Position Papers.