REMIT: ten years and counting: An exploration of the regulatory paradigm for commodity derivative trading in the energy sector
Hiemstra,Liebrich
Hiemstra,Liebrich
Abstract
Trading in energy derivatives is subjected to a fragmented regulatory framework which is largely designed for capital markets. Since 2011, a tailor made regime for the energy sector is in place; REMIT. Market participants need to find their way in this diverse set of obligations and prohibitions. This article describes the regulatory paradigm to which market participants need to adhere and the practical impact on trading in energy derivatives. Data reporting obligations, position limits and the prohibition on insider trading, market manipulation and the disclosure of inside information are discussed in more detail. The article concludes that REMIT fills in a regulatory gap, but its existence is not necessarily inevitable to capture energy derivative trading under a supervisory regime which is adapted to the specifics of energy markets.
Description
Date
2020-09-21
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Volume Title
Publisher
Research Projects
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Keywords
Energy, REMIT, Derivatives, Hedging, data reporting, SDG 10 - Reduced Inequalities
Citation
Hiemstra, L 2020, 'REMIT: ten years and counting : An exploration of the regulatory paradigm for commodity derivative trading in the energy sector', Law and Financial Markets Review. https://doi.org/10.1080/17521440.2020.1805870