The document discusses the role of market operators in monitoring spot electricity markets. It provides details on:
- The key roles of a spot market operator including ensuring volume, price consistency, system security, transparency, and proper participant behavior.
- The monitoring activities and responsibilities of the market operator, including investigating market data, assessing the market, and disseminating neutral information.
- A case study of OPCOM's market surveillance of the new Romanian spot market, covering monitoring resources, tasks, public information, pre-trade and post-trade data reporting, and subjects for monitoring.
- The challenges of enlarging spot markets in the region on a phased basis through cooperation between market operators and consideration of legal
How are Treasurers funding their companies? How do they make short term investments and manage short term liquidity? How does financial regulation come into play?
1. The Romanian power market operator OPCOM launched an electricity spot market in 2000 despite skepticism, and it grew steadily over time.
2. OPCOM introduced new market mechanisms in 2005 like balancing rules and penalties for imbalances that increased freedom, discipline and trading. The market also became more open, reaching over 80% open by 2005.
3. By 2007, OPCOM's spot market achieved good liquidity and a spot market share of around 10%, positioning it well among Eastern European power exchanges. OPCOM also launched green certificates and bilateral contract markets to further develop the electricity market.
This document summarizes ABN AMRO Clearing's second Amsterdam Investor Forum (AIF) held in February. The event brought together 250 professionals from the alternative investment industry. It featured panels, presentations, and keynote speeches on topics like managed account platforms, credit strategies, regulations, fraud detection, and central bank policies. An "AIF Factor" competition gave emerging fund managers the opportunity to pitch their funds to investors. Feedback on the event was positive, praising the quality of speakers and networking opportunities. Such events position ABN AMRO Clearing as a leading provider of prime clearing services to major actors in the alternative investment industry.
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1. Profshare Market Research published a study on the global servo motor market that expects it to show a CAGR of 2019-2027.
2. The study analyzes market constraints, risks, opportunities, and the impact of COVID-19.
3. Key factors like consumer expectations, environmental changes, policies, technology, raw materials, suppliers, concentration rates, and mergers and acquisitions are considered in the research.
1. The document discusses various theories of oligopoly market structure, including game theory, the kinked demand curve theory, the Bertrand model, cartel theory, and Cournot's model.
2. Game theory and the kinked demand curve theory explain why firms in an oligopoly may choose to advertise or keep prices rigid. The Bertrand model analyzes price competition between firms producing homogeneous goods.
3. Cartel theory discusses how firms may coordinate production and prices to behave like a monopolist. However, cartels are unstable due to incentives for members to cheat.
4. Cournot's model analyzes duopoly competition through strategic output decisions. It remains a standard tool but
How are Treasurers funding their companies? How do they make short term investments and manage short term liquidity? How does financial regulation come into play?
1. The Romanian power market operator OPCOM launched an electricity spot market in 2000 despite skepticism, and it grew steadily over time.
2. OPCOM introduced new market mechanisms in 2005 like balancing rules and penalties for imbalances that increased freedom, discipline and trading. The market also became more open, reaching over 80% open by 2005.
3. By 2007, OPCOM's spot market achieved good liquidity and a spot market share of around 10%, positioning it well among Eastern European power exchanges. OPCOM also launched green certificates and bilateral contract markets to further develop the electricity market.
This document summarizes ABN AMRO Clearing's second Amsterdam Investor Forum (AIF) held in February. The event brought together 250 professionals from the alternative investment industry. It featured panels, presentations, and keynote speeches on topics like managed account platforms, credit strategies, regulations, fraud detection, and central bank policies. An "AIF Factor" competition gave emerging fund managers the opportunity to pitch their funds to investors. Feedback on the event was positive, praising the quality of speakers and networking opportunities. Such events position ABN AMRO Clearing as a leading provider of prime clearing services to major actors in the alternative investment industry.
The document discusses the role and needs of competitive market makers in European index options markets. It begins by explaining that competitive market makers provide liquidity to exchanges in return for fee reductions, and also actively trade to profit from volatility movements. It then outlines some of the key needs and challenges for competitive market makers, including continuously updating quotes to reflect their views, making rapid trading decisions based on large amounts of market data, and effectively hedging their positions. Technology is seen as crucial to address these needs, with co-location, low-latency trading systems, and pre-calculations helping market makers compete effectively.
1. Profshare Market Research published a study on the global servo motor market that expects it to show a CAGR of 2019-2027.
2. The study analyzes market constraints, risks, opportunities, and the impact of COVID-19.
3. Key factors like consumer expectations, environmental changes, policies, technology, raw materials, suppliers, concentration rates, and mergers and acquisitions are considered in the research.
1. The document discusses various theories of oligopoly market structure, including game theory, the kinked demand curve theory, the Bertrand model, cartel theory, and Cournot's model.
2. Game theory and the kinked demand curve theory explain why firms in an oligopoly may choose to advertise or keep prices rigid. The Bertrand model analyzes price competition between firms producing homogeneous goods.
3. Cartel theory discusses how firms may coordinate production and prices to behave like a monopolist. However, cartels are unstable due to incentives for members to cheat.
4. Cournot's model analyzes duopoly competition through strategic output decisions. It remains a standard tool but
The Boat Display Market report, which is a new addition defines and briefs the readers about its products, specifications and applications. The research lists highlights the key changing trends adopted by the firm to maintain their dominance.
The document discusses different market structures: pure competition, pure monopoly, oligopoly, and monopolistic competition. It provides characteristics of each market structure and explores how a firm operating within each structure can influence demand, output, and prices through mechanisms like advertising and promotional efforts. The learning objectives are to understand how market structures impact business decisions and the differences between normal and economic profits.
Monopolistic competition is characterized by many small firms that produce differentiated products. In the short run, firms can earn economic profits by producing at a quantity where marginal revenue equals marginal cost. However, in the long run, free entry and exit causes the demand curve to shift left as more firms enter, eliminating economic profits and resulting in normal profits for firms. Firms produce at the minimum point of their average total cost curve where price equals average cost.
MiFID 2 has introduced significant changes to European financial markets through increased regulation and transparency. It aims to strengthen investor protections by reducing research costs, but may unintentionally lead to consolidation. Compliance will be challenging for many firms and smaller managers may struggle with higher costs, while larger firms can absorb costs more easily. Overall the impacts on markets, trading, and the investment management industry are broad-ranging and still unfolding.
The document discusses the European Market Infrastructure Regulation (EMIR) which aims to reduce risks in over-the-counter (OTC) derivatives markets through increased transparency, security and regulation. EMIR requires reporting of all derivatives contracts to trade repositories, clearing of standardized OTC contracts through central counterparties, and risk mitigation processes for non-cleared OTC derivatives. It affects financial and non-financial counterparties engaged in derivatives trading and imposes requirements for reporting, clearing thresholds, and compliance audits.
Market-Based Community Economic DevelopmentRWVentures
This document outlines a framework for using market-based approaches to community economic development. It argues that markets can be leveraged to invest in undervalued assets in low-income communities. The framework involves:
1) Analyzing specific market components and levels like production, exchange, and consumption to identify how to better align market and development goals
2) Identifying "levers" like costs, networks, and information flows that influence market behavior and can be adjusted through activities
3) Choosing activities that target key market levels and levers, like providing alternative credit scoring to reduce risks for lenders.
The goal is to refine markets to include low-income communities by addressing market failures and expanding economic opportunities.
European Market Infrastructure RegulationITC Infotech
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This document summarizes the key features and functions of the National Stock Exchange (NSE) trading system in India, including order matching processes, different market types (normal, odd lot, RETDEBT, auction), user screens and functions, and order management controls like branch and user order value limits. The maximum new user order value limit that can be set for a new user at the Chennai branch of Agre Financial Services is 150 lakh rupees based on the existing branch and user limits provided.
Till now, companies used to issue Initial Public Offering (IPO) at par or at premium (upon meeting stringent criteria) in Nepal. Free Pricing method in IPO in Nepalese capital market is a new concept. Mr. Deepesh K Vaidya, Managing Director of Kriti Capital & Investments Ltd (a leading merchant bank in Nepal) presented about this method to the regulator : SEBON and other stakeholders.
The document discusses different market structures including perfect competition, monopoly, oligopoly, and monopolistic competition. It describes the key characteristics of each structure such as the number of firms, product differentiation, barriers to entry, and firm behavior. Perfect competition has many small firms, identical products, and firms are price takers. A monopoly has a single dominant firm with barriers to entry. Oligopoly is dominated by a small number of large firms where behavior is interdependent. Monopolistic competition has many differentiated products and easy entry/exit.
This document discusses the future of automation in equities trading based on a survey of 91 equities market participants. Key points:
- On average, 44% of equity trading volume is currently automated, though firms vary widely in their degree of automation. Most expect to increase their focus on automating processes over the next 1-3 years.
- Areas seen as most desirable for further automation include regulatory reporting, post-trade analysis, pre-trade price discovery, and post-trade processing.
- Automation is already highly developed for trade execution and order entry/staging, but regulatory requirements are driving greater automation of reporting, compliance checks, and post-trade analysis. Advanced data and cloud technologies are also enabling
This document discusses monopoly power in markets. It defines a pure monopolist as a single supplier that dominates an entire market with 100% concentration. In reality, a working monopoly is deemed to be any firm with over 25% market share, while a dominant firm has at least 40% share. Monopolies can lead to higher prices and lower output compared to competitive markets. However, monopoly power also allows firms to invest profits into research and development. There are economic arguments both for and against monopolies, and intervention may or may not be effective depending on the specific market.
This document is a user guide for Trade Map, an online database of international trade statistics maintained by the International Trade Centre.
The guide provides instructions on how to navigate the Trade Map interface and conduct analyses. It explains how to select products, countries, and time periods. It also demonstrates how to generate tables, graphs, and maps from the trade data.
The guide walks through examples of how exporters and government analysts can use Trade Map to research new export markets, analyze trade portfolio diversification opportunities, and evaluate national and sectoral trade performance trends.
The document summarizes different market structures: perfect competition, monopoly, monopolistic competition, and oligopoly. It defines each structure and provides examples of characteristics like number of sellers, product differentiation, barriers to entry, profit levels, and pricing behavior. Perfect competition has many small sellers of identical products, while monopoly has a single seller of unique products. Monopolistic competition and oligopoly involve intermediate levels of competition between differentiated products.
This summary provides an overview of the key points from the document:
1) The document discusses the evolution of financial market regulation in India, looking back at past approaches and developments, and looking ahead to future reforms. It covers topics like interest rate derivatives markets, benchmarks used, and the need to develop longer tenors.
2) India's financial markets have historically developed within the context of a bank-dominated system, but reforms since the 1990s introduced new market elements and regulations to develop market infrastructure and participants.
3) While progress has been made, issues remain like market activity being concentrated in short tenors. Developing benchmarks and trading for longer tenors could help meet long-term infrastructure funding needs
Egypt Corporate & Regulatory Compliance by Dr._Khaled. PPP.pptMuhammadWaliUllah10
The document provides an overview of capital market regulation in Egypt. It discusses the Capital Market Authority (CMA) as the regulator of Egypt's capital markets. The CMA aims to develop efficient, orderly markets and protect investors. It outlines the CMA's regulatory powers over the Egyptian Exchange, depository companies, brokerage firms, and enforcement actions. Key points covered include CMA's application of IOSCO principles, oversight of disclosure requirements, and handling of investor complaints. The presentation emphasizes the importance of strong regulatory enforcement to ensure market efficiency.
The document discusses the progression from the Monopolies and Restrictive Trade Practices (MRTP) Act to the Competition Act in India. It provides details on the objectives, offences recognized, and roles of the commissions under each Act. The MRTP Act aimed to prevent concentration of economic power and control monopolies, while the Competition Act seeks to eliminate anti-competitive practices. It also outlines key factors that led to the need to substitute the MRTP Act, such as it not mentioning certain offending trade practices like abuse of dominance.
This is a demo version of Williams & Marshall Strategy's report on the polymethyl methacrylate market in the OPEC countries. The report presents a strategic analysis of the polymethyl methacrylate market in the region and a forecast for its development in the medium term. It provides a comprehensive overview of the market, its dynamics, structure, characteristics, main players, growth and demand drivers, etc. This is the most detailed and comprehensive report about the polymethyl methacrylate market in the OPEC countries currently available!
The Boat Display Market report, which is a new addition defines and briefs the readers about its products, specifications and applications. The research lists highlights the key changing trends adopted by the firm to maintain their dominance.
The document discusses different market structures: pure competition, pure monopoly, oligopoly, and monopolistic competition. It provides characteristics of each market structure and explores how a firm operating within each structure can influence demand, output, and prices through mechanisms like advertising and promotional efforts. The learning objectives are to understand how market structures impact business decisions and the differences between normal and economic profits.
Monopolistic competition is characterized by many small firms that produce differentiated products. In the short run, firms can earn economic profits by producing at a quantity where marginal revenue equals marginal cost. However, in the long run, free entry and exit causes the demand curve to shift left as more firms enter, eliminating economic profits and resulting in normal profits for firms. Firms produce at the minimum point of their average total cost curve where price equals average cost.
MiFID 2 has introduced significant changes to European financial markets through increased regulation and transparency. It aims to strengthen investor protections by reducing research costs, but may unintentionally lead to consolidation. Compliance will be challenging for many firms and smaller managers may struggle with higher costs, while larger firms can absorb costs more easily. Overall the impacts on markets, trading, and the investment management industry are broad-ranging and still unfolding.
The document discusses the European Market Infrastructure Regulation (EMIR) which aims to reduce risks in over-the-counter (OTC) derivatives markets through increased transparency, security and regulation. EMIR requires reporting of all derivatives contracts to trade repositories, clearing of standardized OTC contracts through central counterparties, and risk mitigation processes for non-cleared OTC derivatives. It affects financial and non-financial counterparties engaged in derivatives trading and imposes requirements for reporting, clearing thresholds, and compliance audits.
Market-Based Community Economic DevelopmentRWVentures
This document outlines a framework for using market-based approaches to community economic development. It argues that markets can be leveraged to invest in undervalued assets in low-income communities. The framework involves:
1) Analyzing specific market components and levels like production, exchange, and consumption to identify how to better align market and development goals
2) Identifying "levers" like costs, networks, and information flows that influence market behavior and can be adjusted through activities
3) Choosing activities that target key market levels and levers, like providing alternative credit scoring to reduce risks for lenders.
The goal is to refine markets to include low-income communities by addressing market failures and expanding economic opportunities.
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The EMIR rules have been designed to reduce counterparty and systemic risks in OTC trading, standardize OTC derivative contracts and enhance transparency. This paper aims to look at the impact of the regulation on derivatives market participants from their business operat ions and technology landscape.
This document summarizes the key features and functions of the National Stock Exchange (NSE) trading system in India, including order matching processes, different market types (normal, odd lot, RETDEBT, auction), user screens and functions, and order management controls like branch and user order value limits. The maximum new user order value limit that can be set for a new user at the Chennai branch of Agre Financial Services is 150 lakh rupees based on the existing branch and user limits provided.
Till now, companies used to issue Initial Public Offering (IPO) at par or at premium (upon meeting stringent criteria) in Nepal. Free Pricing method in IPO in Nepalese capital market is a new concept. Mr. Deepesh K Vaidya, Managing Director of Kriti Capital & Investments Ltd (a leading merchant bank in Nepal) presented about this method to the regulator : SEBON and other stakeholders.
The document discusses different market structures including perfect competition, monopoly, oligopoly, and monopolistic competition. It describes the key characteristics of each structure such as the number of firms, product differentiation, barriers to entry, and firm behavior. Perfect competition has many small firms, identical products, and firms are price takers. A monopoly has a single dominant firm with barriers to entry. Oligopoly is dominated by a small number of large firms where behavior is interdependent. Monopolistic competition has many differentiated products and easy entry/exit.
This document discusses the future of automation in equities trading based on a survey of 91 equities market participants. Key points:
- On average, 44% of equity trading volume is currently automated, though firms vary widely in their degree of automation. Most expect to increase their focus on automating processes over the next 1-3 years.
- Areas seen as most desirable for further automation include regulatory reporting, post-trade analysis, pre-trade price discovery, and post-trade processing.
- Automation is already highly developed for trade execution and order entry/staging, but regulatory requirements are driving greater automation of reporting, compliance checks, and post-trade analysis. Advanced data and cloud technologies are also enabling
This document discusses monopoly power in markets. It defines a pure monopolist as a single supplier that dominates an entire market with 100% concentration. In reality, a working monopoly is deemed to be any firm with over 25% market share, while a dominant firm has at least 40% share. Monopolies can lead to higher prices and lower output compared to competitive markets. However, monopoly power also allows firms to invest profits into research and development. There are economic arguments both for and against monopolies, and intervention may or may not be effective depending on the specific market.
This document is a user guide for Trade Map, an online database of international trade statistics maintained by the International Trade Centre.
The guide provides instructions on how to navigate the Trade Map interface and conduct analyses. It explains how to select products, countries, and time periods. It also demonstrates how to generate tables, graphs, and maps from the trade data.
The guide walks through examples of how exporters and government analysts can use Trade Map to research new export markets, analyze trade portfolio diversification opportunities, and evaluate national and sectoral trade performance trends.
The document summarizes different market structures: perfect competition, monopoly, monopolistic competition, and oligopoly. It defines each structure and provides examples of characteristics like number of sellers, product differentiation, barriers to entry, profit levels, and pricing behavior. Perfect competition has many small sellers of identical products, while monopoly has a single seller of unique products. Monopolistic competition and oligopoly involve intermediate levels of competition between differentiated products.
This summary provides an overview of the key points from the document:
1) The document discusses the evolution of financial market regulation in India, looking back at past approaches and developments, and looking ahead to future reforms. It covers topics like interest rate derivatives markets, benchmarks used, and the need to develop longer tenors.
2) India's financial markets have historically developed within the context of a bank-dominated system, but reforms since the 1990s introduced new market elements and regulations to develop market infrastructure and participants.
3) While progress has been made, issues remain like market activity being concentrated in short tenors. Developing benchmarks and trading for longer tenors could help meet long-term infrastructure funding needs
Egypt Corporate & Regulatory Compliance by Dr._Khaled. PPP.pptMuhammadWaliUllah10
The document provides an overview of capital market regulation in Egypt. It discusses the Capital Market Authority (CMA) as the regulator of Egypt's capital markets. The CMA aims to develop efficient, orderly markets and protect investors. It outlines the CMA's regulatory powers over the Egyptian Exchange, depository companies, brokerage firms, and enforcement actions. Key points covered include CMA's application of IOSCO principles, oversight of disclosure requirements, and handling of investor complaints. The presentation emphasizes the importance of strong regulatory enforcement to ensure market efficiency.
The document discusses the progression from the Monopolies and Restrictive Trade Practices (MRTP) Act to the Competition Act in India. It provides details on the objectives, offences recognized, and roles of the commissions under each Act. The MRTP Act aimed to prevent concentration of economic power and control monopolies, while the Competition Act seeks to eliminate anti-competitive practices. It also outlines key factors that led to the need to substitute the MRTP Act, such as it not mentioning certain offending trade practices like abuse of dominance.
This is a demo version of Williams & Marshall Strategy's report on the polymethyl methacrylate market in the OPEC countries. The report presents a strategic analysis of the polymethyl methacrylate market in the region and a forecast for its development in the medium term. It provides a comprehensive overview of the market, its dynamics, structure, characteristics, main players, growth and demand drivers, etc. This is the most detailed and comprehensive report about the polymethyl methacrylate market in the OPEC countries currently available!
1. Athens Mini ForumAthens Mini Forum
The role of the Market OperatorsThe role of the Market Operators
in spot markets monitoringin spot markets monitoring
October 6, 2005October 6, 2005
OPCOMOPCOM
2. THE MEANING OF A SPOT MARKETTHE MEANING OF A SPOT MARKET
Through the spot market, with isolated exception, a small shareThrough the spot market, with isolated exception, a small share of wholesaleof wholesale
market is passing. Why to discuss, why so important, what is themarket is passing. Why to discuss, why so important, what is the role?role?
What a spot marketplace has to target in its activity in order tWhat a spot marketplace has to target in its activity in order to playo play
the role that market is expecting from this entity?the role that market is expecting from this entity?
THE REVENUE?THE REVENUE? No, itNo, it’’s a problem for shareholderss a problem for shareholders
THE SURVIVAL?THE SURVIVAL? It is a result of other targets fulfillmentIt is a result of other targets fulfillment
THE VOLUMETHE VOLUME?? YesYes, to support the price consistency, to support the price consistency
THE PRICETHE PRICE?? YesYes, a consistent price, to be used as reference, a consistent price, to be used as reference
THETHE SYSTEM SECURITYSYSTEM SECURITY?? YesYes, the day ahead trading is balancing the system one, the day ahead trading is balancing the system one
day before, minimizing the balancing market volumeday before, minimizing the balancing market volume
THETHE TRANSPARENCYTRANSPARENCY?? YesYes, to have trust. The people like to have trust. This is, to have trust. The people like to have trust. This is
attracting traders and investorsattracting traders and investors
CORRECT PARTICIPANTSCORRECT PARTICIPANTS’’ BEHAVIORBEHAVIOR?? YesYes, the people like to have equal chances: no abuse,, the people like to have equal chances: no abuse,
no collusion, no insider tradingno collusion, no insider trading
3. •• TO LOOK INSIDETO LOOK INSIDE
•• TO INVESTIGATE (IN, OUT)TO INVESTIGATE (IN, OUT)
•• TO ASSESSTO ASSESS
•• TO LOOK ARROUNDTO LOOK ARROUND
•• TO ENABLE AUTHORISEDTO ENABLE AUTHORISED
ENTITIES TO LOOK INSIDEENTITIES TO LOOK INSIDE
•• TO DISEMINATE DAILYTO DISEMINATE DAILY
NEUTRAL INFORMATION,NEUTRAL INFORMATION,
•• TO PUBLISH THE RULESTO PUBLISH THE RULES
•• TO OFFER STATISTIC DATATO OFFER STATISTIC DATA
THE ROLE OF THE MARKET OPERATOR IN MARKETTHE ROLE OF THE MARKET OPERATOR IN MARKET
MONITORINGMONITORING
Market surveillanceMarket surveillance
Strategy and business developmentStrategy and business development, but, but
it is supposing events, facts, data monitoringit is supposing events, facts, data monitoring
Benchmarking, studies, press are helpingBenchmarking, studies, press are helping
Therefore, MONITORING againTherefore, MONITORING again
Reporting activityReporting activity, supporting the upper level, supporting the upper level
monitoring activitymonitoring activity
Transparency,Transparency, supporting market players andsupporting market players and
investors strategies, benchmarking activities,investors strategies, benchmarking activities,
press information, large public educationpress information, large public education
ServiceService for the participantsfor the participants
What a spot marketplace has to do regarding the monitoring proceWhat a spot marketplace has to do regarding the monitoring process ?ss ?
targettarget:: to contribute to improvement of the value or quality of identifito contribute to improvement of the value or quality of identified key items:ed key items:
volume, price, system security, transparency, participants behavvolume, price, system security, transparency, participants behaviorior
4. MARKET SURVEILLANCE CASE:MARKET SURVEILLANCE CASE:
MAIN TOPICS OF THE ROMANIAN NEW SPOT MARKETMAIN TOPICS OF THE ROMANIAN NEW SPOT MARKET
The Power Market, since July 1th,
2005:
17.5 % Regulated
83.5 % Competitive
52 DAM participants, signatories of
Agreement, registered at OPCOM
in September 15th, 2005, with daily
average participation of 27
0
1,500
3,000
4,500
6,000
7,500
9,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
[RON/MWh]
HHI-sale MCP
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
0,00
20,00
40,00
60,00
80,00
100,00
120,00
140,00
160,00
180,00
[RON/MWh]
HHI - sale Market ClearingPrice
The DAM market first 11 weeks
results:
8.16% market share (av.430 MWh/h)
Average price: 26 Euro/MWh
Market Data publication principles:
All data aggregated, not exposing
one single participant situation.
Data on maintenance schedule are
individual
Information available at the same
time to all
July August
5. MARKET SURVEILLANCE CASE :MARKET SURVEILLANCE CASE :
MARKET SURVEILLANCE IN OPCOMMARKET SURVEILLANCE IN OPCOM
OPERATION & RESOURCES
Independently of other departments, reporting to CEO and
Regulatory Authority
3 employees, minimum 1 person in operative surveillance
TASKS
Data and Information reporting on regular basis
Benchmarking data managing
Indicators values calculation, trends and consequences
monitoring
Assessment of administrated market performance, participants’
behavior monitoring
PUBLIC INFORMATION OPCOM web-site as vector
PRE TRADE
Price scale, Maintenance plans (through TSO web-site link)
Hourly allowed priority generation volume as aggregated form
POST TRADE
Hourly aggregated matching curves
Hourly traded volumes and related market clearing prices
Hourly priority generation traded on DAM
SUBJECT FOR MONITORING
Historical biddings: patterns in similar conditions
Bidding behavior’s influence upon prices
Concentration and possible effects
Physical and economic withhold
Usage of market model features in connection with daily market
opportunities
LEGAL SUPPORT
Commercial Code of the Wholesale Electricity Market:
Organization & Mission
“…..will be organized within distinct department, based
on procedures approved by Regulatory Authority and it will be
focused on the surveillance of electricity trading activities within
the centralized markets administered by OPCOM.”
Requirements
-To monitor the market operation
-To monitor if the parties comply with commercial code, other
rules and procedures and to identify possible breach or
anti-competitive behavior
-To inform the Authority about inadequate operation of the
centralized market
-If the case will be:
proposals to modify regulations
proposals to penalize participants
-To report on regular basis about: events in operation,
reasons of increasing/decreasing of market clearing price
-To monthly assess the DAM functioning and the DAM
participants’ behavior
-To report to CEO about issues that could influence the
effectiveness, compliance, integrity and confidence in market
surveillance performance, also DAM efficiency and
competitiveness.
6. THE CHALLENGE OF SPOT MARKETS ENLARGEMENT INTHE CHALLENGE OF SPOT MARKETS ENLARGEMENT IN
THE REGIONTHE REGION
Enough room for two cooperatingEnough room for two cooperating
PXs in the regionPXs in the region
Successful, established spotSuccessful, established spot
markets: the most powerful drivingmarkets: the most powerful driving
force in markets developmentforce in markets development
Lack of evident benefits will not beLack of evident benefits will not be
replaced by political decisionsreplaced by political decisions
Lack of political decision willLack of political decision will
jeopardize the pace of process;jeopardize the pace of process;
Lack of cooperation and agreementsLack of cooperation and agreements
with and between the TSOwith and between the TSO’’s ands and
the Regulatory Authorities willthe Regulatory Authorities will
transform the projects into atransform the projects into a
““simple computer gamesimple computer game””..
7. • Supported by national stakeholders.
• Encouraged by existing and potential market participants.
• Sponsored by regional donors.
• Advised by experienced international consultants.
Current OPCOM voluntary markets:
zonal based trading system,
financial market system being implemented,
settlement services,
organization in place
THE CHALLENGE OF SPOT MARKETS ENLARGEMENTTHE CHALLENGE OF SPOT MARKETS ENLARGEMENT
IN THE REGIONIN THE REGION
BasisBasis
- World Bank approach: phased development
- Nord Pool historical evolution as extending trading area from pair of countries to
all Scandinavian area
- ECSEE real framework: PXs and TSOs ongoing projects
- Joint ETSO – EuroPEX developments and EuroPEX issued documents
- European mini fora conclusions
- Other European PX’s experience in making steps towards IEM
- Certain liquidity brought by large Romanian electricity market and important
DAM share succeeded in present
ProposalProposal
• Phased development from national PX to cluster, passing from neighboring countries approach stage, market
splitting as reliable congestion management method. Similar evolution of Borzen will support envisaged market
coupling when a critical mass of traders from each sub-region will be in place. Borzen and OPCOM can equally but
specifically focus on SEE area connection with the neighboring countries of the region (Austria, Italy and Greece,
Hungary, Moldova, Turkey or Ukraine).
• The incipient national market operators can play a role within internal framework based on a decentralized
organization;
• An ownership structure intending to bring trust, neutrality and transparency;
• Regional stakeholders can participate in design performance based on trading simulator;
• Started as bilateral market, the emerging SEE regional market will initially introduce the explicit auctions as bilateral
trading support. The phased approach will enable a soft landing of implicit auctions.
8. THE CHALLENGE OF SPOT MARKETS ENLARGEMENTTHE CHALLENGE OF SPOT MARKETS ENLARGEMENT
IN THE REGIONIN THE REGION
Monitoring: a normal coordinateMonitoring: a normal coordinate
• PXs to monitor the process in order to identify opportunities
and limits
• Are the data from benchmarking enough?
• Possibly not all values are reliable.
• What flows and what prices have to be expected?
• PXs to monitor the legal issues in the region countries: some
solutions can be identified as unaffordable by legal framework
• The payments: a problem?
• The collaterals posting: another problem?
• PXs to provide equal training for potential participants: the
rules have to be equally known and opportunities understood.
• PXs to provide maximum transparency allowing to participants
to assess the benefits.
Market power, the regional integration will mitigate?
Market abuse? Look for participants influencing the spot market price to have benefits in
another one. But the different market prices are linked? What influence of different
balancing rules upon spot market? The competition is possible?
How much disclosure of information? How deep to investigate?
Different regulators, the same opinion?
The recommendation of ETSO regarding transparency (outages, maintenance plans)
will be followed and the data will be disclosed in due time?