Over recent years financial and wholesale energy market regulators have tightened their scrutiny over the functioning of commodities markets. New global regulations were introduced in order to reduce systemic risk, to increase market transparency, integrity and market conduct. These regulations included MiFID II, MAR, REMIT, EMIR and the Dodd Frank Act.
On energy commodities, ACER, the European Wholesale Energy Regulator, issued regulatory guidance on the prohibition of REMIT market manipulation focussing on Layering and Spoofing, Transmission Capacity Hoarding and Wash Trades. The guidance follows a record number of open cases and record fines in the European power and gas wholesale markets.
In this Insight, KRM22’s Director of Product Strategy for Regulatory Risk, Saeed Patel, looks at the changing regulatory landscape, how Market Surveillance solutions have evolved, and what the system of the future will need to provide to continue to meet the ongoing requirements.
KRM22’s Global Risk Platform provides applications to help you address your firm’s regulatory, market, technology and operations risk challenges and to manage your entire enterprise risk profile. KRM22 is a public Group listed on AIM and headquartered in London, with offices in several of the world’s major financial centers.