Changes from report parliamentary committee draft to plenary report

AddedWhere the Agency withdraws an authorisation to an IIP pursuant to this paragraph, it shall remove that IIP from the register.

RemovedRegulation (EU) No 1227/2011

AddedWhen the registration has been withdrawn, to ensure continuity of the services provided by the IIP, the IIP concerned shall inform all relevant market participants and, in consultation with them, 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.

RemovedArticle 1 – paragraph 1 – point 8 a (new), Article 7 d a (new): (8a) the following article is inserted: / ‘Article 7da / LNG market data quality / 1. LNG market data shall include: / (a) the parties to the contract, including buy/sell indicator; / (b) the reporting party; / (c) the transaction price; / (d) the contract quantities; / (e) the value of the contract; / (f) the arrival window for the LNG cargo; / (g) the terms of delivery; / (h) the delivery points; / (i) the timestamp information on all of the following: / (i) the date and time of placing the bid or offer; / (ii) the transaction date and time; / (iii) the date and time of reporting of the bid, offer or transaction; / (iv) the receipt of LNG market data by ACER. / 2. LNG market participants shall provide ACER with LNG market data in the following units and currencies: / (a) transaction, bid and offer unit prices shall be reported in the currency specified in the contract and in EUR/MWh and shall include applied conversion and exchange rates if applicable; / (b) contract quantities shall be reported in the units specified in the contracts and in MWh; / (c) arrival windows shall be reported in terms of delivery dates expressed in UTC format; / (d) delivery point shall indicate a valid identifier listed by ACER such as referred to in the list of LNG facilities subject to reporting pursuant to Regulation (EU) No 1227/2011 and Implementing Regulation (EU) No 1348/2014; the timestamp information shall be reported in UTC format; (to be replaced with cross-references as appropriate); …

AddedThe Agency shall, without undue delay, notify the national competent authority in the Member State where the IIP is established of any decision to withdraw the authorisation of an IIP pursuant to the first subparagraph and shall inform the market participants thereof.

RemovedRegulation (EU) No 1227/2011

Added6. The Commission shall adopt delegated acts in accordance with Article 20 to supplement this Regulation by specifying:

RemovedArticle 1 – paragraph 1 – point 9 – point a, Article 8 – paragraph 1a: (1a) For the purpose of reporting records of transactions, including orders to trade, entered, concluded or executed at organised market places, where a market participant trades through an organised market place, those organised market places, or third parties on their behalf, shall make the order books available to the Agency, fulfilling on behalf of market participants their obligations set out in paragraph 1.

Added(a) the means by which an IIP is to comply with the inside information obligation referred to in paragraph 2;

RemovedThe amendment provides clarity and aims at avoiding to double the amount of data that must be reported. The proposed modifications make sure that order book are shared in any case in order to allow that the Agency performs the supervision correctly, but removing the double reporting from individual market participants. At the same time, bilateral contracts should continue to be reported in accordance with Article 8, paragraph 1.

Added(b) the content and any relevant further details of the inside information made public pursuant to paragraphs 2 and 3 in such a manner as to enable the publication of information required under this Article;

RemovedRegulation (EU) No 1227/2011

Added(c) the concrete organisational requirements for the implementation of paragraphs 4 and 5.

RemovedArticle 1 – paragraph 1 – point 9 – point a, Article 8 – paragraph 1 a a (new): 1aa. LNG market participants and any other person or authority on their behalf, as listed in paragraph 4, points (b) to (f), shall provide systematically the Agency with a record of LNG market data, in accordance with the specifications set out in the Implementing Regulation (EU) No 1348/2014.

AddedThe first such delegated act shall be adopted by... [six months after the date of entry into force of this amending Regulation].”;

RemovedCoherently with the changes proposed to Articles 7a. 7b, 7c and 7d, in order to make sure that ACER properly collects all relevant LNG market data and to ensure that thus process is effectively integrated in the current REMIT provisions, we propose to include a new provision in Article 8 giving the obligation to market participants to provide the Agency with those data.

Added(6) The following Article 5a is added:

RemovedRegulation EU 1227/2011

Added“Article 5a

RemovedArticle 1 – paragraph 1 – point 9 – point d – point i, Article 8 – paragraph 4 – point d: (d) an organised market place, a trade-matching system or other person professionally arranging transactions;

AddedAlgorithmic trading

RemovedProviding coherence with the amendment to the definition of PPATs.

Added1. A market participant that engages in algorithmic trading shall have in place effective systems and risk controls suitable to the business it operates to ensure that its trading systems are resilient and have sufficient capacity, are subject to appropriate trading thresholds and limits and prevent the sending of erroneous orders to trade or the systems otherwise functioning in a way that may create or contribute to a disorderly market. The market participant shall also have in place effective systems and risk controls to ensure that the trading systems comply with this Regulation and with the rules of an organised market place to which it is connected. The market participant shall have in place effective business continuity arrangements to deal with any failure of its trading systems and shall ensure its systems are fully tested and properly monitored to ensure that they meet the requirements laid down in this paragraph.

RemovedRegulation (EU) No 1227/2011

Added2. A market participant that engages in algorithmic trading in a Member State shall notify that engagement to the national regulatory authorities of the Member State where it is registered pursuant to Article 9(1) and to the Agency.

Change 3

ChangedArticleThe 1national –regulatory paragraphauthority 1of –the pointMember 10,State Articlewhere 9the –market paragraphparticipant 1:is 1.registered Marketpursuant participantsto enteringArticle into9(1), transactionsmay whichrequire arethe requiredmarket participant to beprovide, reportedon toa ACERregular inor accordancead-hoc withbasis, Articlea 8(1)description shallof registerthe withnature theof nationalits regulatoryalgorithmic authoritytrading instrategies, details of the Membertrading Stateparameters inor limits to which theythe aretrading establishedsystem oris resident.subject, Market▌key participantscompliance residentand orrisk establishedcontrols inthat aare thirdin countryplace shallto registerensure withthat the nationalrequirements regulatorylaid authoritydown in paragraph 1 of athis MemberArticle Stateare insatisfied whichand theydetails areof active.the testing of its trading systems.

Change 4

RemovedRegulation (EU) No 1227/2011

AddedThe market participant shall arrange for records to be kept in relation to the matters referred to in this paragraph and shall ensure that those records are sufficient to enable its national regulatory authority to monitor compliance with this Regulation.

RemovedArticle 1 – paragraph 1 – point 11, Article 9a – paragraph 1 – subparagraph 3: The Agency shall issue the authorisation to operate as RRM within a reasonable time period and, to the extent possible, in less than three months from the receipt of the application. The authorisation shall be effective and valid for the entire territory of the Union, and shall allow the RRM provider to provide the services for which it has been authorised throughout the Union.

Added3. A market participant that provides direct electronic access to an organised market place shall notify the competent authorities of the Member State where the market participant is registered pursuant to Article 9(1) and the Agency accordingly.

RemovedAuthorisation of RRMs shall be given within a reasonable time limit that we propose to be less than 3 months.

AddedThe national regulatory authority of the ▌Member State where the market participant is registered pursuant to Article 9(1) may require the market participant to provide, on a regular or ad-hoc basis, a description of the systems and risk controls referred to in paragraph 1 of this Article and evidence that those have been applied.

RemovedRegulation (EU) No 1227/2011

AddedThe market participant shall arrange for records to be kept in relation to the matters referred to in this paragraph and shall ensure that those records be sufficient to enable its national regulatory authority to monitor compliance with this Regulation.

RemovedArticle 1 – paragraph 1 – point 11, Article 9a – paragraph 1 – subparagraph 3 a (new): An entity which has already been listed as an RRM before ... [the date of entry into force of this Regulation], may continue to act as an RRM until it receives from the Agency the authorisation issued in accordance with this Article.

Added4. This Article is without prejudice to obligations laid down in Directive (EU) 2014/65.

RemovedIt is necessary to ensure continuity before all relevant technical details are decided and enter into force.

AddedThe provisions regarding algorithmic trading contained in this Article shall not apply to transmission system operators' areas of activity that use automation, such as the activation of balancing energy, insofar as those automated processes are addressed by the Commission Regulation (EU) 2017/2195.”;

RemovedRegulation (EU) No 1227/2011

Added(6a) in Article 6, paragraph 1 is replaced by the following:

RemovedArticle 1 – paragraph 1 – point 11, Article 9a – paragraph 2: 2. The Agency shall regularly review the compliance of RRMs with this Regulation. For that purpose, upon the Agency's request, RRMs shall report about their activities to the Agency.

Added“1. The Commission shall be empowered to adopt delegated acts in accordance with Article 20 in order to:

RemovedTo reduce automatic administrative burden for entities.

Added(a) align the definitions set out in points (1), (2), (3) and (5) of Article 2 for the purpose of ensuring coherence with other relevant Union legislation in the fields of financial services and energy;

RemovedRegulation (EU) No 1227/2011

Added(b) update those definitions for the sole purpose of taking into account future developments on wholesale energy markets;

RemovedArticle 1 – paragraph 1 – point 11, Article 9a – paragraph 3 – subparagraph 4: RRMs shall, together with market participants, have in place a mechanism allowing to effectively check transaction reports for completeness, identify omissions and obvious errors caused by the market participant, and where such error or omission occurs, to communicate details of the error or omission to the market participant and request to receive a corrected version of such reports.

Added(c) further specify the notion of inside information, including with regard to the establishment of a non-exhaustive list of relevant intermediate steps in a protracted process in those cases where, by itself, the information meets the criteria laid down in Article 2, point (1) and in which cases it is to be disclosed in accordance with Article 4(1);

RemovedIt is difficult for RRM to know if transaction reports are correct, therefore is wiser to make sure that RRM put in place a mechanism together with market participants and that is workable and effective.

Added(d) establish a list of examples of market manipulation behaviour that are relevant to the application of this Regulation; and

RemovedRegulation (EU) No 1227/2011

Added(e) establish, taking into account national specificities, minimum thresholds for the identification of events which, if they were made public, would likely to significantly affect the prices of the wholesale energy products.”;

RemovedArticle 1 – paragraph 1 – point 11, Article 9a – paragraph 4 – subparagraph 3: An RRM whose authorisation has been withdrawn, to ensure continuity of the services provided by the RRM, shall ensure orderly substitution including the transfer of data to other RRMs and the redirection of reporting flows to other RRMs. The Agency shall set a reasonable period for such orderly substitution, taking into account the relevant specificities of the RRM concerned.

Added(7) in Article 7, paragraph 1 is replaced by the following:

RemovedRegulation (EU) No 1227/2011

Added“1. The Agency shall monitor trading activity in wholesale energy products to detect and prevent trading based on inside information and market manipulation or attempts thereof. It shall collect the data for assessing and monitoring wholesale energy markets as provided for in Article 8.”;

RemovedArticle 1 – paragraph 1 – point 11, Article 9a – paragraph 5: By ... [18 months after the date of entry into force of this amending Regulation], the Commission shall adopt implementing acts, specifying:

Added(7a) in Article 7, paragraph 3 is replaced by the following:

RemovedRegulation (EU) No 1227/2011

Added“3. The Agency shall at least on an annual basis submit a report to the Commission on its activities under this Regulation and on implementation and application of this Regulation, and make that report publicly available. In such reports the Agency shall assess, inter alia, the operation and transparency of different categories of market places and ways of trading and may make recommendations to the Commission as regards market rules, standards, and procedures which could improve market integrity and the functioning of the internal market. It may also evaluate whether any minimum requirements for organised markets could contribute to enhanced market transparency. Reports may be combined with the report referred to in Article 11(2) of Regulation (EC) No 713/2009.”;