This document summarizes the regulatory compliance services offered by Maitland Energy Consulting Ltd regarding key European energy market regulations. They help clients understand the impacts of EMIR, MiFID I & II, and REMIT regulations, identify gaps in business processes and IT systems, and implement optimized compliance solutions. Their services include impact and gap analyses, process reengineering, provider selection, implementation support, and representation on regulatory committees. Timelines for compliance under each regulation are also presented.

1. Maitland Energy Consulting
Ltd.
European Financial Regulations :
EMIR, MiFID I & II, REMIT
MEC.ltd.gb@gmail.com
+44 (0) 777 616 6537
Regulatory Compliance
Services

2. Compliance Services - Questions
• We help you answer the following key questions :
• 1. “Are these regulations :
– a) Just a nuisance, adding no value to my underlying
business processes?
– b) An opportunity to improve some of my slack
business processes?
– c) A blessing in disguise, offering real opportunity for
value-add in processes and systems?”
• 2. “What is the optimal trade-off between doing
the ‘minimum necessary’ and the ‘maximum
possible’?
• 3. “What is the cost – benefit of compliance?”

3. Main Services - Summary
• Impact Analysis of the new EU regulations on your core
business
• Gap Analysis of your current :
– Business processes
– Compliance IT
• Compliance business process re-engineering
– Help you develop a ‘compliance culture’
– Staff training (through workshops and on-line courses)
• Compliance IT requirements gathering & system
selection
• 3rd
party service provider selection (e.g. RRMs, eCM)
• Compliance solution implementation
• Representation – we sit on several regulatory
committees, e.g. ACER REMIT IT Expert Group

4. Main Services – EMIR (1)
• EMIR Impact Analysis
– Clearing Threshold : NFC-, NFC+, FC?
– Clearing, Collateral & Margining
– Transaction reporting
– Mitigation of Operational Risk
• Gap Analysis
– Business processes : determine fitness for purpose against ‘Impacts’
– Compliance IT : determine fitness for purpose against ‘Impacts’
• Compliance business process re-engineering
• Compliance IT requirements gathering
– Clearing Threshold monitoring and enforcement
– Transaction reporting
– Credit, Clearing, Collateral, and Margin management
– Mitigation of Operational Risk
• 3rd
party service provider selection – Trade Repository, CCP,
Portfolio Compression
• Compliance solution implementation
– Project management

5. Main Services – EMIR (2)
‘Mitigation of Operational Risk’ is COMPULSORY
• We assist you with processes and systems for
– ‘Timely Confirmation’ (cost-benefit analysis)
• eCM?
– EFET? ICE?
• E-FAX?
• Remain manual?
– Portfolio Reconciliation
– Portfolio Compression
– Dispute Resolution
– Position MtM Valuation
– Credit Risk & Collateral management

6. Main Services - REMIT
• REMIT Impact Analysis
– Determination of liability
• Management of ‘Fundamental Data’ and ‘Inside’ Information
• Trade surveillance & anti-market abuse
• Order & Transaction reporting
• Gap Analysis
– Business processes : determine fitness for purpose against ‘Impacts’
– Compliance IT : determine fitness for purpose against ‘Impacts’
• Compliance business process re-engineering
– Trading staff REMIT compliance training
• ‘Insider Dealing’ – what is legal and what isn’t
• Market manipulation
• Compliance IT requirements gathering
– Self-build OR enhance ETRM OR implement specialist 3rd
party solution?
• REMIT service provider
– RIS & RRM selection?
– EFET eRR?
– Self-report?
• Compliance solution implementation
– Programme management
– Order & Transaction reporting
– Trade surveillance

7. Main Services – MiFID II
• MiFID II Impact Analysis
– Determination of current liability
– Exemption management under Annex C
– SWOT of future trading business growth vis a vis MiFID II
– Impact of lost exemptions vs. getting a MiFID License
– ‘Know Your Customer’ – do you have a compliant process in place?
• Gap Analysis
– Business processes : determine fitness for purpose against ‘Impacts’
– Compliance IT : determine fitness for purpose against ‘Impacts’
• Compliance business process re-engineering
– Transition management from exempt to non-exempt
– KYC
• Compliance IT requirements gathering
– Position Limit minding
– Reporting
• Service provider – Trade Repository selection
• Compliance solution implementation
– Position Limit minding & Reporting

8. Timelines – how urgent?
• EMIR
– Mitigation of Operational Risk : since Sept 2013
– Transaction reporting : since Feb 2014
– Clearing & collateralisation : late-2015
– Impact analysis :
• Mitigation of Op Risk – should be implemented!
• Clearing & Collateralisation : NOW!
• REMIT
– Market transparency : since Dec 2011
– Anti-Abuse & trader surveillance : since Dec 2011
– Acts of Implementation & TRUM : Jan 7th 2015
– Transaction reporting from Oct 7th 2015
– Liability & impact analysis : energy companies starting NOW!
• MiFID II
– Starts early-Jan 2017
– Treatment of physical energy forwards under Annex C : Jun 2015
– Liability & impact analysis : energy trading & utility companies starting NOW!

9. MiFID II Timelines

10. MiFID II Timelines

11. MiFID - Know Your Customer

12. ‘Beyond EU Regulations’
• Europe is not alone in introducing these
new financial regulations
– ‘Extraterritoriality’ means double or even triple
regulation
– US : Dodd-Frank
– Switzerland, Norway : EMIR & REMIT-like
regs
– Singapore : implementing EMIR-like regs
• We have international specialists able to
help determine your global liablity

13. Non-Executive Directorships
• Are you looking for Non-Executive
Directors?
– 25 yrs experience in energy markets
• Compliance & Regulation
• Trading
• Risk Management
• IT
– At VP, Director, senior management level
• We have suitably qualified candidates for
niche energy suppliers, traders, and
generators