SEMOpx Market Surveillance - Trading Behaviour in M7
Affected Period
Status
Closed
Category
SEMOpx
Run type
Created
30/09/2022 15:26
Last Updated
30/09/2022 16:00
Dear SEMOpx Members,
SEMOpx, the SEMOpx Market Surveillance Unit and the Market
Monitoring Unit (MMU) have been investigating trading behaviour on the Intraday
Continuous M7 platform which is suspected to have breached the Exchange rules
relating to market conduct and behaviour.
Specifically, certain members are suspected of breaching the
following legislation and/or rules:
- Regulation
(EU) 1227/2011 (REMIT) Article 5, which prohibits any engagement in, or
attempt to engage in, market manipulation; and
- SEMOpx
Market Rules section D 1.2 (Market Conduct, Monitoring and Surveillance
Principles)
A number of members have engaged in a strategy of bidding
behaviour which we believe to be deceptive and misleading to the Market.
An example of the type of trading strategy is outlined below, whereby the Bid Price shadows the Ask price with a negative bid. The Bid Price is intentionally chosen so as to appear close to the Ask Price, but relies on an Exchange Member not noticing that the bid is negative until after the trade is concluded. We do not see this as commercially viable or in line with Exchange rules relating to loyal, honest, transparent and professional good practice.
|
Order ID |
Time stamp |
BQty (MW) |
Bid
Price (/MWh) |
Ask
Price (/MWh) |
AQty (MW) |
Spread (/MWh)
|
|
Example Data |
08H2 |
10 |
430 |
450 |
10 |
20 |
|
Example Data |
09H1 |
10 |
430 |
450 |
10 |
20 |
|
Example Data |
09H2 |
10 |
-430 |
450 |
10 |
880 |
|
Example Data |
10H1 |
10 |
-525 |
550 |
10 |
1075 |
|
Example Data |
10H2 |
10 |
-525 |
550 |
10 |
1075 |
|
Example Data |
11H1 |
10 |
525 |
550 |
10 |
25 |
|
Example Data |
11H2 |
10 |
525 |
550 |
10 |
25 |
We have engaged with the members on this trading behaviour. SEMOpx, the SEMOpx Market Surveillance Unit and the MMU would like to
take this opportunity to formally state to all SEMOpx Members that this this
type of trading activity is not appropriate in SEMOpx markets. This behaviour
has been flagged, and will be reported to REMIT.
It is the joint responsibility of SEMOpx and Exchange
Members to ensure a fair and transparent energy market, in order to promote
public confidence in the Exchange, its pricing mechanisms and its reference
prices for the benefit of end consumers. Per Section D.1.5.1 of the SEMOpx
Rules, both SEMOpx and Exchange Members are obliged to inform the Regulatory
Authority whenever a suspected infringement of Chapter D of the SEMOpx Rules is
detected. Exchange Members are urged to flag instances of unusual trading
behaviour to the Market Monitor mailbox: monitor@semopx.com
The
info@sem-o.com and
info@semopx.com mailboxes
are also available for general queries and support.
Kind Regards,
SEMOpx