Soon energy companies in Europe will have to report all power and gas trades under the regulation on wholesale energy market integrity and transparency, better known as REMIT. The regulation was introduced to tackle insider trading and market abuse in EU energy markets. It defines and prohibits market and obliges firms to report suspicious transaction. Trade reporting will come in six months after the European Commission publishes its implementing acts. This could be any time between now and December, meaning energy companies will need place how they will report trades by May or June next year.

1. Complying with REMIT Webinar
What energy traders need to be doing now to comply with the regulation
Moderator: Fionn O‟Raghallaigh
Speakers: Aviv Handler, Gordon Downie
11 November 2014

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Content
•1. Introduction
•2. REMIT – Preparing for data reporting
•3. REMIT compliance – legal perspectives
•4. Q&A

5. www.icis.com
Introduction
•Regulation to give regulators EU-wide oversight of power and gas transactions
•Transparency data, whistleblowing, trade data
•European Commission still due to produce final implementing acts for REMIT
Waiting for the final act

6. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission REMIT – Preparing for data reporting ICIS Webinar
11th November 2014
Aviv Handler – Managing Director

7. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission
The Four Streams of Regulation
7 Trade Reporting
REMIT EMIR
MiFID II
Clearing/Margining EMIR MiFID II Risk Mitigation
CRDIV EMIR
MiFID II
Trade Surveillance
REMIT
MAD 2
Uncleared
ETR

8. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission
REMIT – Original Official Timetable
Source - Acer

9. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission REMIT – Original Official Timetable Source - Acer Likely to be January 2015
Probably now 9 months

10. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission Regulatory High Level Timings
10
Q3
Q4
Q1
Q2
Q4
2014
2015 EMIR Mandatory Clearing Starts
REMIT Implemented?
REMIT Standard? MiFID II?
Margining for uncleared deals starts
CEREMP?
REMIT Non Standard?
Q3
Q1 Q2 2016

11. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission
REMIT – Types of Data
•Order data – All pre trade data of trades executed on a venue
•Trade Data –Executions, modifications and terminations for Standard and Non Standard trades
•Fundamental Data – Physical data such as nominations, movements etc. – to be reported. There is an overlap with the upcoming “ETR” rules. Most fundamental data will be reported by TSOs
•Inside Information – Rules already in force but to be modified

12. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission
Formats vs Phases - summary
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Format Table 1
Format Table 2
9 Months from Implementing Act*
•On venue trades as listed in the TRUM
•NA
15 Months from Implementing Act*
•Off venue trades that are the same as those listed in the TRUM
•Trades with a fixed volume or price
•All other trade types
When to report
•T+1
•30 days
*Assuming current draft of Implementing Act goes into force
Tables 3 and 4 cover auctions and transport

13. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission
REMIT Data Reporting – Schematic Overview
ACER ARIS
Execution Venue (non exchange) Exchanges Market Participant RRM
EMIR TR OTC Trades, Post execution events for non exchange? For self reporting RRMs
Execution Only.
OTC Trades, Post execution events for non exchange?
Entire lifecycle
All EMIR fields. Does not include orders

14. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission
Some Issues
•Who reports?
•Venue or market participant? Venue will not have all of the data, and may not know about post trade events
• EMIR Trades
•Can rely on TR to report, but pre trade orders must also be reported
•Who will be the RRMs?
•Not many have declared yet
•How does delegation work?
•Many “gotchas”
•Backloading
•Only applies to trades that are “live” on reporting date

15. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission
To do – data reporting
Now
Registration – Make sure you know which entities to register, where to register them and have all of the correct information
Data location – Location all of the data you need to report – much of it won‟t be in your premises
Data preparation – Start your plans now, and properly understand the Trade Reporting User Manual (TRUM)
Routings - Research different routes by which you can send data
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Implementing Act Adoption
Registration – Register all entities
Data reporting– Kick off all plans to send data straight away, if you haven‟t already
Routings – select your solution as soon as possible
Stay in touch – keep an eye out for developments and changes

16. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission Contact
Aviv Handler
Managing Director
ETR Advisory Ltd
+44 20 7193 3200
aviv@etr-advisory.com
See www.energytradingregulation.com for regular updates
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17. Copyright © 2014 ETR Advisory Limited. Not to be redistributed without permission
Legal
•Disclaimer: To the extent permitted by law, neither ETR Advisory Ltd nor its presenters will be liable by reason of breach of contract, negligence or otherwise for any loss or consequential loss occasioned to any person acting omitting to act or refraining from acting in reliance upon the material or presentation,.. Except as expressly and specifically provided in this agreement: you assume sole responsibility for results obtained from the use of the presentation and for conclusions drawn from such use. ETR Advisory Ltd shall have no liability for any damage caused by errors or omissions in any information, instructions or scripts, or any actions taken by ETR Advisory Ltd; and all warranties, conditions and other terms implied by statute or common law are, to the fullest extent permitted by law, excluded from this agreement.
•Nothing in this agreement excludes or limits the liability of ETR Advisory Ltd for: death or personal injury caused by the ETR Advisory Ltd's negligence; fraud or fraudulent misrepresentation; or any other liability which cannot lawfully be excluded or limited.
•Intellectual property rights: all Intellectual Property Rights and all other rights in the materials shall be owned by ETR Advisory Ltd.
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18. November 2014
Gordon Downie
REMIT Compliance – Legal Perspectives

19. Key legal obligations
•Insider trading / market abuse bans
•Market disclosure duties
•Duties to „blow the whistle‟ REMIT
•Transaction reporting regime
•Oversight of monitoring/enforcement
Commission & ACER
•Legislation to underpin compliance
•Monitoring/enforcement powers
M/S‟s & NRAs 19
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REMIT Compliance - ICIS Webinar, 11 November 2014
Interaction with FS regime (MAR, EMIR)
Interaction with other legal norms (e.g., criminal law)

20. Monitoring and enforcement (1)
Investigation
Activity Whistleblowing Complaints Self-reporting Market Monitoring
20 17/11/2014
REMIT Compliance - ICIS Webinar, 11 November 2014 Transaction reporting
Transparency
data
Regulatory
cooperation

21. Monitoring and enforcement (2)
21
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REMIT Compliance - ICIS Webinar, 11 November 2014 Pro‟s Con‟s Cross-border enforcement?

22. REMIT compliance priorities
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REMIT Compliance - ICIS Webinar, 11 November 2014
Systems & processes
Board commitment Education & training Audit & improvement Compliant culture

23. Questions / discussion
Thank you for
your attention! 23
17/11/2014 REMIT Compliance - ICIS Webinar, 11 November 2014
gordon.downie@shepwedd.co.uk

24. Thank you for listening
Questions?