The evolution of the Swiss power trading framework in 2018

December 17, 2018

On the run up to ETRC 2019 this March, we thought we'd dig up some work undertaken by our speakers to help you get a feel for what they're all about.

 

One of our regulars, from ElCom (Swiss power regulator), Cornelia Kawann; joins ETRC to dissect the regulatory impact of blockchain technology.

 

In the meantime, we thought we'd share some news from ElCom's 2018 annual conference where they discussed the evolution of the trading framework in the Swiss electricity market.


One of the things outlined is ELCom’s role from surveillance of electricity supply security to International electricity transmission and trading: auction procedure, coordination with foreign regulators and authorities. Cornelia neatly summarises the main points around REMIT and how it affects Switzerland. For example, in the context of insider trader, companies are obligated to publish any inside information. She has also provided a plethora of data reported ELCom such as displayed:
 

(figure 1)

 

 

The process of reporting suspicious behaviour is outlined in three steps:

  • Monitor and detect

    • Using both automated screening and manual alerts to identify potential suspicious trading activity

    • Conducting general analysis e.g the acidity of members

  • Investigate

    • Request further information from market participant If required

    • Conduct investigation with a concluding decision with respect to if there has been a breach or not

  • Report

    • ElCom market surveillance team reports to ElCom

    • ElCom informs relevant regulatory authority if needed

Cases of market manipulation techniques are described such as layering. Cornelia describes layering
as a series of bids (or offers) with no intention to execute them on the market but rather with hopes
of influencing the market price are entered and then cancelled. ‘The market participant will be able
to buy (sell) at a lower (higher) level’.

 

Cornelia also briefly writes about XBID (Cross border Capacities allocated implicitly in intraday
trading) , introducing it as well as identifying some of the threats. 

 

For the full report, please click on the link here.

 

In the meantime, make sure you catch Cornelia in person alongside countless other regulators, see the programme here and register here.

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