ACM to be extra alert to preventing insider trading on the wholesale energy market
The wholesale energy markets are currently facing unprecedented turbulent times, one of the reasons being the Russian invasion of Ukraine. In these market circumstances, the Netherlands Authority for Consumers and Markets (ACM) is extra alert to market participants abusing such situations. In order to prevent insider trading, ACM monitors whether market participants comply with the obligation to publish inside information. In addition, ACM calls on market participants that are active on the wholesale market to file reports about market abuses. In the first half of 2022, ACM received fewer reports of market abuse than the average in 2021.
Insider trading and market manipulation are prohibited so that prices for consumers and businesses are formed on the wholesale energy market in a fair and market-based manner. All market participants in all European countries must comply with the same rules. These rules are called REMIT (Regulation on wholesale Energy Market Integrity and Transparency). ACM enforces compliance with the REMIT rules.
Under REMIT, trading platforms (so-called PPATs) are required to monitor transactions through their platforms and to report if there are indications of possible manipulation or insider trading. ACM calls on the platforms to continue to give their internal surveillance activities sufficient attention and to file reports about possible market abuses with ACM. Other market participants can also report suspicious trading on the energy market.
To ensure that the European energy market functions well, it is important that all companies have all of the relevant information at the same time. This helps ensure that prices for consumers are formed in a fair and market-based manner. And that is important in these turbulent times. Knowledge about, for example, interrupting or adding production capacity is important information that may affect prices formed on the wholesale energy market. That is why ACM will actively monitor whether market participants on the wholesale energy market for gas and electricity comply with the obligation to publish inside information. If it is revealed that market participants do not have their publications in order, ACM will take action. In June 2022, ACM imposed a fine on a Dutch energy producer, supplier, and trader.
More information
- REMIT Briefing No. 4 (newsletter in which ACM informs readers about last year’s REMIT activities)