Changes from report parliamentary committee draft to plenary report

Added(h) the following new paragraph (8a) is inserted:

RemovedRegulation (EU) No 1227/2011

Added“(8a) 'person professionally arranging or executing transactions' means a person professionally engaged in the reception and transmission of orders for, or in the execution of transactions in, wholesale energy products;”;

RemovedArticle 1 – paragraph 1 – point 4 – point b, Article 4 – paragraph 4: The publication of inside information, including in aggregated form, in accordance with Regulation (EC) No 714/2009 or (EC) No 715/2009, or guidelines and network codes adopted pursuant to those Regulations constitutes effective disclosure but not timely and public disclosure within the meaning of paragraph 1 of this Article.

Added(i) the following new paragraph (10a) is added:

RemovedThe updated wording clarifies that the publication of inside information according to Regulations 714/2009 and 715/2009 does not fully address the requirement in Article 4 paragraph 1, because while it is considered effective disclosure, it is not timely.

Added“(10a) 'the Agency’ or ‘ACER’ means the European Union Agency for the Cooperation of Energy Regulators;”;

RemovedRegulation (EU) No 1227/2011

Added(j) the following points are inserted:

RemovedArticle 1 – paragraph 1 – point 5, Article 4a – paragraph 1: 1. IIPs shall register with the Agency. An IIP shall only operate after the Agency has assessed whether that IIP complies with the requirements of this Article and has authorised its operation. The register of IIPs shall be publicly available and shall contain information on the services for which the IIP is authorised. The Agency shall regularly review the compliance of IIPs with this Regulation. Where the Agency has withdrawn an authorisation to an IIP in accordance with paragraph 5, it shall remove that IIP from the register.

Added“(16) ‘registered reporting mechanism’ or ‘RRM’ means a person registered under this Regulation to report or to provide the service of reporting details of transactions, including orders to trade, and fundamental data as defined in Article 2, second subparagraph, point (1), of Implementing Regulation (EU) No 1348/2014, to the Agency on its own behalf or on behalf of market participants;

RemovedStreamlining of the language and simplification of the procedures.

Added(17) ‘inside information platform’ or ‘IIP’ means a person registered under this Regulation to provide the service of operating a platform for the disclosure of inside information and for the reporting of disclosed inside information to the Agency on behalf of market participants.

RemovedRegulation (EU) No 1227/2011

Added(18) ‘algorithmic trading’ means trading, including high-frequency trading, in wholesale energy products where a computer algorithm automatically determines individual parameters of orders to trade such as whether to initiate the order, the timing, price or quantity of the order or how to manage the order after its submission, with limited human intervention or no such intervention at all, not including any system that is only used for the purpose of routing orders to one or more organised market places or for the processing of orders involving no determination of any trading parameters or for the confirmation of orders or the post-trade processing of executed transactions;

RemovedArticle 1 – paragraph 1 – point 5, Article 4a – paragraph 2: 2. An IIP shall have adequate policies and arrangements in place to make public the inside information required under Article 4(1) as close to real time as is technically possible, on a reasonable commercial basis. The information shall be made available and accessible for all purposes free of charge. However, IIPs may have further application programming interfaces to process the information, which can be made available to the public, and in such cases they can do it on a reasonable commercial basis. The IIP shall efficiently and consistently disseminate such information in a way that ensures fast access to the inside information, on a non-discriminatory basis and in a format that facilitates the consolidation of the inside information with similar data from other sources.

Added(19) ‘direct electronic access’ means an arrangement whereby a member, participant or client of an organised market place allows another person to use its trading code so the person may electronically transmit orders to trade relating to a wholesale energy product directly to the organised market place, including arrangements which involve the use by a person of the infrastructure of the member, participant or client, or any connecting system provided by the member, participant, or client, to transmit the orders to trade (direct market access) and arrangements whereby such an infrastructure is not used by a person (sponsored access);

RemovedSome technical work is necessary to develop application programming interfaces that can be useful to further elaborate the information which is made public. A distinction should be possible and when there is technical work and investments done, can be recovered by IIPs on a commercial basis.

Added(20) ‘organised market place’ or ‘OMP’▌ means an energy exchange, an energy broker, an energy capacity platform or any other system or facility in which multiple third-party buying or selling interests in wholesale energy products interact in a way that may result in a transaction;.

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Added(20a) ‘order book’ means all details of wholesale energy products executed at organised market places including matched and unmatched orders as well as system-generated orders and life cycle events;

RemovedArticle 1 – paragraph 1 – point 5, Article 4a – paragraph 3: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added(21) ‘LNG trading’ means entering into any transaction, including orders to trade in an organised market place or taking any other action relating to the purchase or sale of LNG:

RemovedIt is proposed to delete the list proposed by the Commission and leave it to be decided through the implementing act foreseen in paragraph 6, as there is the need to be careful when considering which are the details related to inside information that shall be published.

Added(a) that specifies physical delivery in the Union;

RemovedRegulation (EU) No 1227/2011

Added(b) that results in delivery in the Union; or

RemovedArticle 1 – paragraph 1 – point 5, Article 4a – paragraph 4 – subparagraph 3: The IIP, together with market participants, shall have in place a mechanism that can quickly and effectively check inside information reports for completeness, identify omissions and obvious errors, and request to receive a corrected version of such reports.

Added(c) in which one counterparty re-gasifies the LNG at a terminal in the Union.

RemovedRegulation (EU) No 1227/2011

Added(22) ‘LNG market data’ means records of ▌transactions, orders to trade and any other action relating to the purchase or sale of LNG, with corresponding information as specified in ▌Implementing Regulation (EU) No 1348/2014;

RemovedArticle 1 – paragraph 1 – point 5, Article 4a – paragraph 5: The Agency may withdraw the authorisation of an IIP, and remove it from the register, where the IIP:

Added(23) ‘LNG market participant’ means a market participant who is a natural or legal person, irrespective of that person’s place of incorporation or domicile, who engages in LNG trading;

RemovedAlignment with previous amendments

Added(24) ’LNG price assessment’ means the determination of a daily reference price for LNG trading in accordance with a methodology ▌established by the Agency;

RemovedRegulation (EU) No 1227/2011

Added(25) ‘▌benchmark’ means any index that is periodically or regularly determined by the application of a formula to, or on the basis of the value of, one or more underlying wholesale energy products, including estimated prices, by reference to which the amount payable under a wholesale energy product or a contract relating to a wholesale energy product, or the value of a wholesale energy product, is determined.”;

RemovedArticle 1 – paragraph 1 – point 5, Article 4a – paragraph 5 – point c: (c) no longer meets the requirements for authorisation set out in this Article;

Added(3) in Article 3(1) the following second subparagraph is added:

RemovedStreamlining of language

Added“The use of inside information by cancelling or amending an order, the establishment of links or dependencies between orders, or any other action relating to entering into transactions or issuing orders concerning a wholesale energy product to which the information relates, where the order was placed before the person concerned possessed the inside information, shall also be considered to be insider trading.”;

RemovedRegulation (EU) No 1227/2011

Added(4) Article 4 is amended as follows:

RemovedArticle 1 – paragraph 1 – point 5, Article 4a – paragraph 5 – subparagraph 2: When the registration has been withdrawn, to ensure continuity of the services provided by the IIP, the IIP concerned shall ensure orderly substitution including the transfer of data to other IIPs and the redirection of reporting flows to other IIPs. The Agency shall set a reasonable period for such orderly substitution, taking into account the relevant specificities of the IIP concerned.

Added(-a) the title is replaced by the following:

RemovedIt is necessary to provide for a clearer role and process for ACER in cases of withdrawing of IIPs' registration.

Added“Inside information”;

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Added(a) in paragraph 1 the following 2nd subparagraph is added:

RemovedArticle 1 – paragraph 1 – point 5, Article 4a – paragraph 5 – subparagraph 3: The Agency shall, without undue delay, notify the national competent authority in the Member State where the IIP is established of a decision to withdraw the authorisation of an IIP and inform the market participants thereof.

Added“Market participants shall disclose the inside information through IIPs. The IIPs shall ensure that the inside information is made public in a manner which enables fast access to that information, including ▌through a clear application programming interface ▌ and a complete, correct and timely assessment of that information by the public.”;

RemovedThe market participants must be aware of this as they are the first interested parties to know that an IIP is no longer active.

Added(b) paragraph 4 is replaced by the following:

RemovedRegulation (EU) No 1227/2011

Added“4. The publication of inside information, including in aggregated form, in accordance with Regulation (EC) No 714/2009 or (EC) No 715/2009, or guidelines and network codes adopted pursuant to those Regulations constitutes ▌effective ▌disclosure but not necessarily timely and public disclosure within the meaning of paragraph 1 of this Article.

RemovedArticle 1 – paragraph 1 – point 5, Article 4a – paragraph 6: By ...[18 months after the date of entry into force of this amending Regulation], the Commission shall adopt implementing acts, specifying:

Added4a. The Agency shall establish a contact point for market participants seeking to clarify whether specific information constitutes inside information pursuant to this Regulation.

RemovedIt is necessary to give some time to adapt the new rules, properly consulting Member States and stakeholders.

AddedThe Agency shall develop and operate a platform serving as a sector-specific electronic access point for inside information disclosed pursuant to paragraph 1.”;

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