.jpg)
The German National Regulatory Authority (NRA) for Energy, Bundesnetzagentur, imposed a fine of EUR 150,000 on Uniper Global Commodities SE (Uniper), and of EUR 1,500 and EUR 2,000 respectively on two traders working for that company. In its decision, the NRA held that in October 2016 two traders of Uniper engaged in market manipulation on the German within day gas market, breaching the prohibition under Article 5 of the EU Regulation on wholesale energy market integrity and transparency (REMIT).
The German NRA found that in October 2016, two traders of Uniper inserted on the trading platform PEGAS orders on both sides of the order book, in a way that prevented other market participants from trading when they wanted to do so. More specifically, by using iceberg orders (orders including a hidden volume, which only progressively becomes visible once the visible part of the order is matched) on one side of the order book, combined with large orders on the other side of the order book, the traders reduced to the minimum the difference between the highest price that a buyer is willing to pay and the lowest price at which a seller is willing to sell, in a way that impeded other market participants from placing better orders and from entering into transactions with the Market Area Manager NetConnect Germany (NCG). According to the NRA, this behaviour sent false and misleading signals to the market, and in particular to NCG, on the supply, demand and price. Uniper was held accountable for the lack of supervision of its traders. The NRA’s decision can be appealed.
The Agency for the Cooperation of Energy Regulators (ACER) welcomes effective oversight of wholesale energy trading and this first decision to impose a penalty within the framework of the REMIT Regulation in Germany. The ACER Guidance provides examples of various such types of market practices that can constitute market manipulation.
For detecting these types of behaviour, effective market monitoring of EU wholesale energy markets plays a key role and ensures confidence in market outcomes for the benefit of EU energy consumers. Market monitoring is carried out at European as well as at national level thanks to close cooperation between ACER, NRAs and Persons Professionally Arranging Transactions (PPATs).
For further information see:
https://documents.acer-remit.eu/wp-content/uploads/4th-Edition-ACER-Guidance_updated.pdf
