Regulation

Regulation
Powernext SA is a regulated market undertaking under the French Authority for Financial Markets (Autorité des Marchés Financiers – AMF) and the Prudential and Resolution Control Authority (Autorité de Contrôle Prudentiel et de Résolution – ACPR) of Banque de France. Powernext SA is based in Paris, and part of EEX Group which is headquartered in Leipzig, Germany. Due to the specificity of the instruments and products traded on its platforms, Powernext SA is also monitored by the French energy regulator (Commission de Régulation de l’Energie – CRE) and is subject to the French energy and environmental legislation and regulation.

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 The general exemption for commodity trading provided by MiFID I will be repealed and replaced by a so-called ancillary activity exemption.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.

Position reporting

Every person trading commodity derivatives on a trading venue will be subject to position limits. Trading will 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/transaction-reporting

Please also consult the MiFID II Q&A of EEX Group for further information: https://www.eex.com/blob/71554/c196dbe57a97ff80d5063c5577434272/20170724-eex-group-mifid-ii-qa-v01a-final-web-data.pdf

Please contact compliance-services@eex.com for further questions around position and transaction reporting. For other subjects related to MiFID II/MiFIR, please contact regulation@powernext.com.

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 compliance-services@eex.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.

For more information please visit https://www.ecc.de/ecc-en/risk-management/emir or contact compliance-services@eex.com.