EFETnet opens RRM functionality for REMIT reporting of external trades
EFETnet has opened up its RRM functionality for REMIT. It is now possible for Market Participants to offer their own REMIT reporting services to the market, ‘powered’ by EFETnet’s ‘eRR External Agent’ reporting functionality - free of charge and without the need to register with ACER as an RRM.
Starting with EMIR and continuing into REMIT Phase 1, EFETnet is already supporting reporting on behalf of same corporate group companies and counterparties, including counterparties of group companies. This functionality is fully retained for REMIT Phase 2 with no action required for existing users. ‘eRR External Agent’ reporting adds to this proven functionality by allowing the reporting of external trades, where the EFETnet client reporting them is not a party to the trade.
Starting April 7, 2016, REMIT makes regulatory reporting of bilateral transactions in power and gas mandatory across the EU. Even companies with limited trading activities will have to submit reports to ACER, as reporting exemptions for small contracts — 10 MW nominal capacity for power plants and 20 MW for gas facilities — are easily surpassed.
As a result, more than 7,000 market participants have registered so far with EU national regulatory authorities under REMIT. However, mandatory reporting of transactions is not a one-time effort: apart from the difficulties in understanding the REMIT process and data, and mapping a power or gas contract to regulatory terms, market participants have to choose an RRM, close a data reporting agreement with that RRM, and maintain a data connection to it.
In light of this effort, the significant number of reporting parties and the deadlines the industry must work to, the scene is set for larger organisations with the capabilities to set up reporting services and to offer these services to the market. By opening up its ‘reporting on behalf of’ RRM functionality to such companies, EFETnet facilitates provision of reporting service without the need for them to register as an RRM themselves. Organisations offering ‘reporting on behalf of’ to third parties simply need an agreement with EFETnet, which iss an RRM in its own right, to ‘power’ their own reporting service.
Data confidentiality and compliance with European competition law is fundamental to offering ‘reporting on behalf‘ services to third parties. EFETnet has consulted ACER and conducted a rigorous due diligence of its ‘eRR External Agent’ functionality, resulting in an updated contractual framework that is released today. Organisations opting to offer their own REMIT reporting services powered by ‘eRR External Agent’ functionality can do so in the knowledge that it is both technically sound and legally compliant.
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