Pilot project – Energy Trade Data Reporting Scheme

1st Steering Committee Meeting

Brussels, 5 October 2010

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Motivation

• Enhanced framework for the supervision of traded energy markets is needed – Ongoing public consultations by DG Markets and DG Energy

• Need to further develop market transparency – ERGEG’s draft advice on Comitology Guidelines

• Current (national) wholesale energy market monitoring initiatives are not harmonised and comprehensive - Patchwork of reporting schemes may not support effective surveillance

• Further increase in electricity and gas trading activities due to advances in European energy market integration

Pilot project for energy trade data reporting

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Objectives

1. Demonstration of the feasibility of an efficient and cost effective standardised trade data collection, storage and monitoring scheme;

2. Recommendations for a future European trade data reporting and monitoring scheme on issues such as data field definition standardisation, communication interfaces, transaction data anonymisation, secure data access and data publication;

3. Development of a concept and examples for analyses of trade (and other relevant) data for market monitoring purposes including potential market abuse;

4. Development of a concept and representative examples for statistical analyses of trade data.

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Project organisation

European Energy RegulatorsFinancial Services Working Group

(chaired by BNetzA)

Steering Committee (European Commission, European

energy regulators, EFET, EEX, Spectron, RWE, FORMAET)

E-Control Project Management & Support

Cooperation with

EFETnet (eXRP)

Project partner:

FORMAET Services

Cooperation with Energy Exchanges

(historical data)

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Project organisation (continued)

• Guidance of the Financial Services (FIS) Working Group ensures continuous involvement of European energy regulators;

• Project Steering Committee with representatives from the European Commission, regulators, EFET, exchanges, brokers and traders, FORMAET;

• E-Control provides project management and support and coordinates activities with project partners.

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The role of the Steering Committee

• Provide guidance and market expertise on specific issues;

• Support provision of test data for pilot project;

• Communicate and disseminate pilot project issues and conclusions.

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Project planJul 2010 – Jan 2011

Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11

Concept phase: Data sourcing, access & analysis, IT specification & software

Implementation phase: Set up IT application, test runs

Proof of concept phase: Data exchange & analysis

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Pilot project status

• First round of discussions with stakeholders and market participants;

• Kick-off meeting with potential project partners;

• Establishment of project organisation & setting up Steering Committee;

• Development of IT concept for pilot project;• Identification of key aspects of a potential

future European trade reporting scheme.

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Pilot project IT concept

Trade database

Test trade data(EFETnet eXRP project partners)

Fundamental data

Data analysis tool

Trade data(e.g. historical data from

selected exchanges)

eXRP standardeXRP standard

Data analysis and statistics(examples)

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Pilot project IT concept (continued)

• Pilot project test data exchange based on eXRP (EFETnet) standard;

• Pilot project trade data analyses based on historical data provided by selected project partners (e.g. exchanges, brokers, traders);

• Fundamental data provided by various existing sources.

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First ideas for a potential European energy trade data reporting scheme

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General concept

Comprehensive

Data collectionComprehensive

Data collectionComprehensive

data collection

27 EU countries

All market places

(trader, broker, exchange)

All standard* products

(spot, derivatives)

Fundamental data

(generation, network,

consumption)

Energy

regulators

Financial

regulators

Competition

authorities

Academia,

public, etc

individual access rights

* inclusion of non-standardised products to be determined

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Some key aspects to be addressed

• Market players to report trades only once and in a standardised format;

• Traders to be able to verify own trade data reported;

• Rights for national regulators to access data from other countries to be determined;

• Integration of fundamental data for market monitoring purposes essential.

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Some key aspects to be addressed (continued)

• Consistency of data (e.g. counterparty information) across countries has to be guaranteed;

• Central versus de-central trade data collection process;

• Governance structures and procedures of a European trade reporting scheme have to be defined;

• Access rights for academia and public to be determined;

• Other issues to be determined in the course of the pilot project.