The process of examining the activities of an institution in order to look for possibilities of attempted or actual market manipulation and abuse. Surveillance can be carried out internally or externally. Rules such as the Market Abuse Directive (MAD) and the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT) prohibit market manipulation. Different parties are responsible for carrying out surveillance in different ways, usually through the use of dedicated systems and analytics.
* see also Agency for the Cooperation of European Energy Regulators (ACER); Market Abuse Directive (MAD), MAD II and Market Abuse Regulation (MAR); Regulation on Wholesale Energy Market Integrity and Transparency (REMIT)
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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