The Regulation on Wholesale Energy Market Integrity and Transparency (“REMIT”) established an EU market monitoring framework to detect and prevent market abuse in wholesale energy markets. From 7 October 2015, REMIT will impose an obligation on market participants to register with a National Regulatory Authority (“NRA”) and to report certain information to the European Agency for the Cooperation of Energy Regulators (“ACER”) relating to transactions and orders to trade in “wholesale energy products”. Members of CME Europe and their Customers who place orders to trade or execute transactions in “wholesale energy products” will be classed as “market participants” under REMIT and therefore have direct obligations under REMIT to register with an NRA and to report data to ACER. From 7 October 2015, CME Europe will offer a straightforward REMIT reporting solution to help our Members and their Customers to meet their reporting requirements under REMIT. The information below provides an overview of the REMIT reporting obligation and the reporting solution offered by CME Europe.
“Market participants” within the meaning of REMIT are required to register with the relevant NRA prior to entering into a reportable transaction under REMIT. The registration process, administered by NRAs, is open now. CME Europe requires its members to have in place all necessary authorisations, licences and permissions regulatory under applicable laws and regulations, and this includes any registrations that may be required under REMIT.
Under REMIT, “market participants” are required to report details of orders to trade (matched and unmatched) and executed transactions in “standard contracts” that are “wholesale energy products” to ACER from 7 October 2015. ACER maintains a list of contracts that fall within the definition of “wholesale energy products” and this includes certain contracts traded on CME Europe
CME Europe is categorised as an “organised market place” under REMIT. We will offer a REMIT data reporting solution to our Members and their Customers in compliance with REMIT to facilitate the reporting of data by “market participants” (the “REMIT Reporting Solution”). The REMIT Reporting Solution will facilitate the reporting of orders to trade and transactions executed in CME Europe contracts that are within the scope of REMIT to ACER.
Under the REMIT Reporting Solution, CME Europe will report details of orders to trade and executed transactions in “wholesale energy products” placed at CME Europe via CME European Trade Repository, a CME Group company, as its Registered Reporting Mechanism (“RRM”) under REMIT1. Users of the service may be required to provide certain additional information to CME Europe to enable full reports to be made to ACER on their behalf.
The REMIT Reporting Solution is offered on an opt-in basis. CME Europe Members and their Customers wishing to take advantage of the REMIT Reporting Solution are required to sign a REMIT reporting agreement with us. “Market participants” that choose not to utilise the REMIT Reporting Solution will be expected to report to ACER via another mechanism in accordance with REMIT.
No fees are payable for the REMIT Reporting Solution, although we reserve the right to charge for this service in the future.
The REMIT Reporting Solution is a full RRM offering that will facilitate REMIT reporting for all markets, i.e. not just CME Europe contracts.
CME Europe is also able to offer an FTP download service in the format of the ACER XML. This service extracts REMIT reportable data held relating to executed trades and orders and converts them into a reportable ACER XML format. This data is then made available for download from a secure FTP folder location.
Please note, any customer selecting the ACER XML via FTP service will need to separately arrange for the submission of data reportable under REMIT regulation to ACER.
CME ETR is a registered trade repository under EMIR and will offer reporting services as an RRM under REMIT, building on the significant experience and reputation of CME Group in the world of trade and regulatory reporting. Users of the CME Europe REMIT Reporting Solution will have a direct relationship and user interface with CME ETR, enabling them to view data reported to ACER under the REMIT Reporting Solution and also (subject to certain additional requirements) to utilise the CME ETR RRM service to submit other REMIT data to ACER, i.e. relating to orders to trades and executed transactions placed on other venues.
1CME European Trade Repository (CME ETR) is a trading name of CME Trade Repository Limited. CME Trade Repository Limited is a registered trade repository under EMIR and is a Registered Reporting Mechanism under REMIT.
Contact the CME ETR Client Services Team should you have any questions on the REMIT reporting regime, access to services or billing and fee structures.
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