An EU regulation, initially adopted in December 2011, covering trading in gas and power markets using inside information and prohibiting market manipulation and abuse. REMIT extends the concept of the Market Abuse Directive (MAD) to physical gas and power and requires market participants to disclose physical inside information, and to avoid attempted and actual market manipulation and abuse. The rules are co-ordinated by the Agency for the Cooperation of Energy Regulators (ACER) and implemented by each national regulatory authority. ACER will start to collect order and trade data as well as fundamental data from 2015 via registered reporting mechanisms (RRMs) and regulated information services (RISs). The requirement for publication of ‘inside information’ is already in force, as is the ban on trading on the back of inside information until it is published.
* see also Agency for the Cooperation of Energy Regulators (ACER); Market Abuse Directive (MAD); registered reporting mechanism (RRM); regulated information service (RIS)
Commodity trading and risk management is a subject that is necessarily complicated, and is becoming more so. The Energy Risk Glossary seeks to disentangle and clarify the jargon by providing definitions of commonly used energy and commodity market terms.
These include definitions related to a variety of underlying energy products, as well as technical terms about the many instruments and benchmarks used by energy market participants.
Many of the most recent terms to have been added to our glossary stem from the actions of regulators since the 2008 global financial crisis. The onset of rules, such as the US Dodd-Frank Act and European Market Infrastructure Regulation, has markedly increased the cost and complexity associated with commodity trading. Perhaps they have also increased the need for a handy reference guide such as this.
The glossary is extensively cross-referenced, making for easy and thorough searches. We hope you find the latest edition of the Energy Risk Glossary to be a useful resource.
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