FESE response to the Commission consultation on the REMIT Implementing Regulation on data reporting rules

FESE supports the European Commission’s goals to simplify regulations and reduce compliance costs. However, it raises concerns about the proposed “exposure reporting” under REMIT for certain commodity derivatives, and the duplicative reporting requirements for financial instruments.

• The draft suggests that mismatches between trading positions and physical generation/consumption could be flagged as suspicious, potentially misinterpreting legitimate trading and risk management practices. This contradicts REMIT Level 1 definitions of market abuse and may harm market liquidity. FESE recommends not to penalise legitimate hedging/trading activity that deviates from projected consumption/generation.
• Furthermore, rather than increasing the reporting burden for financial instruments already covered by MiFID, FESE supports data-sharing arrangements between financial and energy regulators to be strengthened to ensure the already available position data is shared efficiently and securely with ACER