Regulatory Reporting Services within EEX Group
European legislation aims at increasing transparency and stability of commodity trading. To achieve transparency, a number of reporting obligations have been put into place. The technical infrastructure to meet these reporting obligations applying to gas trading is provided to Powernext by EEX AG, the majority shareholder of Powernext. We are committed to support our clients apply the required measures efficiently. Therefore, all regulatory reporting services are aligned using the same infrastructure, member access mechanism as well as a common source of Exchange, Clearing and Configuration data.
Markets in Financial Instruments Directive (MiFID II/MiFIR)
The Markets in Financial instruments Directive (MiFID) was implemented in 2009 to set a common framework towards a fully integrated pan-European financial market with the aim to enhance transparency and prevent market abuse. Its renewal MiFID II/MiFIR, launched in 2011 and entering into full force on January 3rd 2018, will induce sweeping changes in the way how the European financial sector will be regulated and monitored.
The revision of is set to change the rules for trading commodity derivatives in particular. The general exemption for commodity trading provided by MiFID I will be repealed and replaced by a so-called ancillary activity exemption. Those who exceed the respective thresholds will be categorised as an investment firm, and thus will have to fully comply with many new legal requirements. For those who stay below the thresholds, only some obligations of MiFID II apply.
Every person trading commodity derivatives on a trading venue will be subject to position limits. For Powernext, these limits are defined by Autorité des Marchés Financiers (AMF). Powernext has published complementing information via a customer information in December 2018.
Trading venues have to report its members’ positions on a daily basis to their national regulators to support the monitoring of positions. To this end, Powernext and EEX will leverage ECC’s position data and combine this information with the instrument reference data and configuration data provided by the members to create draft daily and weekly MiFID II position reports. Members will be able to access and amend the draft reports provided by the regulatory reporting service of EEX Group. Please find all information regarding the position reporting solution here: (https://www.eex.com/en/regulatory-reporting-services/mifid2-mifir/reporting-services/position-reporting)
Powernext has delegated position reporting to its parent company European Energy Exchange AG. Members and prospective members are required to sign the MiFID II/ MiFIR Data Service Agreement with EEX AG.
Trading venues have the obligation to submit a report for each transaction of non-investment firms and third-country firms to its National Competent Authorities (NCAs), i.e. BaFin for EEX and AMF for Powernext.
EEX Group will leverage ECC‘s transaction data as well as order data from the trading system (T7) and combine this information with instrument reference data and configuration data provided by the members to create a draft MiFIR transaction report. Applicable exchange members are required to support the transaction reporting of the trading venues and can do so using the regulatory reporting solution of EEX Group.
Investment firms have the obligation to create MiFIR daily transaction reports and send them to their national regulator. For investment firms EEX Group will be able to offer the same draft report creation service as stated above. Nonetheless it is assumed that an investment firm might have more complex amendment requirements and in addition to the draft reports, further measures have to be implemented. Please find all information regarding transaction reporting here: https://www.eex.com/en/regulatory-reporting-services/mifid2-mifir/reporting-services/transaction-reporting
Powernext has delegated transaction reporting to its parent company European Energy Exchange AG. Members and prospective members are required to sign the MiFID II/ MiFIR Data Service Agreement with EEX AG.
Please also consult the MiFID II Q&A of EEX Group for further information: https://www.powernext.com/sites/default/files/download_center_files/eex-group-mifid-ii-qa-web-data.pdf
Wholesale Energy Market Integrity and Transparency (REMIT)
Powernext offers the reporting of transaction data according to Article 8 of REMIT via its majority shareholder EEX AG. This service enables all trading participants to delegate their reporting obligations of transaction data to those exchanges. This includes all transactions concluded on any of the exchanges or registered for clearing via the Trade Registration function as well as orders.
The service covers the reporting or the provision of exchange trading data. The data will be formatted as defined by REMIT, the REMIT Implementing Regulation and the latest procedures, standards and electronic formats published by ACER and will be reported or provided accordingly. In order to use the Transaction Reporting service, members need to conclude a data reporting agreement with EEX as the central contractual counterparty for this service.
The conclusion of the REMIT Data Services Agreement with EEX AG is a precondition for the use of the service: https://www.eex.com/download/en/60810
If you wish to receive further information about the details of the REMIT Data Reporting Service, please send an e-mail to email@example.com.
European Market Infrastructure Regulation (EMIR)
All transactions concluded at Powernext are cleared by ECC, the clearing house of EEX Group. ECC offers an EMIR reporting service for its clients.
Since 12 February 2014, counterparties are obliged to report derivative transactions to a trade repository according to EMIR Article 9. For ECC’s members, these requirements comprise trade and position reporting, as well as reporting of data on collateral and valuations for financial counterparties.
ECC offers Clearing Members and Non-Clearing Members a service whereby they can delegate their reporting obligations to ECC. This means that members can significantly reduce their reporting efforts for all derivatives trades cleared by ECC and can benefit from aligned processes with transaction reporting under REMIT.
MiFID II Reports
The MiFID II regulation aims at achieving transparency over companies’ order execution modalities through a best execution scheme. As trading venues whose asset class has been identified by ESMA’s Regulatory Technical Standards (RTS27), EEX and Powernext are required to implement reporting and monitoring procedures to determine the best way to execute client orders, taking into consideration the regulation.
Consequently, EEX and Powernext will publish quarterly 5 reports including the following information for each financial instrument, each trading day and each trading venue:
- Transaction prices (simple and volume-weighted averages, highest and lowest, best bids and best asks, etc.)
- Transaction volumes
- Transaction timestamps
- Trading systems
- Trading modes
- Number orders or request for quotes received
The reports will be published for EEX and Powernext for report table 1-4 and 6-8 on a daily, and for report table 5 on a quarterly basis: RTS27 Reports
RTS 2 Pre-Trade Transparency
For the purpose of fulfilling the pre-trade transparency obligations referred to in Art 8 of REGULATION (EU) No 600/2014 (as further specified in RTS 2), trading venues have to provide pre-trade data for current bids and offers. The relevant data for trade registration at EEX and Powernext are published here: Pre-trade transparency report
EEX and Powernext provide the pre-trade transparency data for on-exchange order book trading via the respective market data system of the Deutsche Börse Group. More detailed information are published here: http://www.mds.deutsche-boerse.com/mds-en/data-services/real-time-market-data/mifid-ii-disaggregated-information-products.
Please be aware that the quotation time is displayed in UTC.
EEX Group and Brexit
The markets of the European Union and the U.K. are strongly interwoven, and Brexit has thus a potential impact on the markets on both sides of the Channel. As member of EEX Group, we are committed to supporting our members in their efforts regarding this topic. As Brexit is relevant for all types of energy exchanges, there is a group-wide approach to tackle this topic. You can find all relevant information here: https://www.eex-group.com/eexg/services/brexit