Tag: Energy Traders

Reuters – Volatility spikes may be unintended consequence of EU commodities rules

Reuters – Energy traders are at odds with new European Union rules designed to halt speculation in commodities, arguing that companies won’t be able to efficiently manage risk and market volatility could in fact spike. The European Securities and Markets Authority (ESMA) this week announced its final rules to flesh out the Markets in Financial Instruments Directive II (MiFID II) law that comes into force in January 2017. MiFID II is the biggest overhaul of EU securities rules in a decade, designed to apply lessons from the 2007-09 financial crisis when food prices hit record highs due to speculators such... continue reading

Deutsche fined over 4.7M GBP for trade reporting errors – Is it time to panic? – Some thoughts

Last week the FCA published a final notice against Deutsche Bank fining them just over £4.7 million (after a settlement discount). The fine was for misreporting Equity CFD trades under MiFID for several years. The full notice can be seen here. The misreporting was inadvertent and the matter was rectified as soon as the mistake was uncovered. Never the less the fine was large. The question is, should that cause panic in the energy trading industry, where EMIR reporting has been going for just over six months? The fine was issued for getting the “buy/sell” flag the wrong way round, which is one data reporting field.... continue reading

Deutsche fined over 4.7M GBP for trade reporting errors – Is it time to panic? – Some thoughts

Last week the FCA published a final notice against Deutsche Bank fining them just over £4.7 million (after a settlement discount). The fine was for misreporting Equity CFD trades under MiFID for several years. The full notice can be seen here. The misreporting was inadvertent and the matter was rectified as soon as the mistake was uncovered. Never the less the fine was large. The question is, should that cause panic in the energy trading industry, where EMIR reporting has been going for just over six months? The fine was issued for getting the “buy/sell” flag the wrong way round, which is one data... continue reading

What the FERC!?

The Federal Energy Regulatory Commission (FERC) made headlines after it issued a record fine of $453M against Barclays PLC and several of its power traders. FERC stated that the bank manipulated energy prices in California and other western markets between November 2006 and December 2008. The agency is also working towards a similar settlement with J.P. Morgan Chase. When I read the news, the dollar amount of the fine wasn’t what resonated. The fact that it was issued for manipulation that began over 7 years ago did. FERC doesn’t have to abide by a statute of limitations, and other agencies... continue reading

MiFID II moving forward

There has been quite a bit of MiFID II activity of late, with the end of the Irish EU Presidency approaching and the desire to move forward before it ends on June 30th. The focus of last week’s activity was whether Equities should be included within the new OTF (Organised Trading Facility) rules, and there is a great deal of discussion about this. Of more interest to those in energy and commodities is the fact that the timetable for the introduction of OTFs is now moving forward. The OTF is likely to capture some of the trading that thus far... continue reading