Matters relating to insider information, trade surveillance and market manipulation are among the most delicately complex matters in modern day trading. After all, rather than a question any formalised business function, it's so often one of personality, trust, habits or even culture. With that, we think it's crucial to get as much insight into what's actually happening on trading floors as possible in order to gain a complete understanding. And so with ETRC around the corner, we got the chance to pick the brains of Brigitte Hendrikse and Marek Dal-Canton of Gulf Gas+Power and Statkraft.
- Inside information is a notion that is not new to regulations, why do you think it still causes uncertainty/struggle? :
" Even though the notion of Inside Information is not very new, it still is only 7 years old for the energy market. Additionally, the existing guidance by regulators is still very limited (or unclear) which leaves companies in a grey area and therefore a lot of room to interpret. Besides that, the dynamics of the energy markets are changing (e.g. the shift from conventional power plants to renewable ones) and so is the judgement of situations on whether or not this may constitute Inside Information."
- Do you foresee an increase of cases linked to market manipulation in the future? Why ? :
" Yes, we certainly expect an increase in cases. The reason is that trade surveillance by ACER/NRAs is in full force now. This makes monitoring and detection of market manipulation for the authorities easier. In addition, the period between the detection and a final decision on relevant cases usually takes quite some time (recent rulings relate back to 3-4 years ago). This gap is now bridged and hence we can expect more regular rulings coming. In addition, on the financial side, MAR (and with MAR also the strengthened provisions on market manipulation) only came into force in July 2016 and we will see new cases here shortly as well."
- You’ll lead a workshop on market manipulation and how to be best prepared for compliance in that area at ETRC next month. Any tips to give our audience ahead of the session ? :
" We are looking forward to having a very interactive session, so we encourage participants to bring examples of their own cases and questions. The only other requirement is to at least have read REMIT/MAR once."
Brigitte Hendrikse & Marek Dal-Canton.
For more lively debate on the topic, trade surveillance will be up for discussion (in a panel no less) at ETRC this March 12 ! You can register for it here.