EU energy crisis sparks trading oversight task force

In an effort to combat abusive trading in the energy markets, the European Securities and Markets Authority (ESMA) and the EU Agency for the Cooperation of Energy Regulators (ACER) are launching a new joint task force and beefing up market surveillance and enforcement.

The initiative to enhance market oversight and enforcement comes amid an ongoing energy crisis in Europe that has raised regulatory concerns about markets and trading.

“In the current energy crisis characterized by high prices and price volatility, vigilance in detecting market manipulation and insider trading is more important than ever to ensure confidence in EU wholesale energy and financial derivatives trading,” the regulators said in a joint release.

With oversight of trading in energy and derivatives markets falling under two different regulatory frameworks, the ESMA and ACER are stepping up co-operation and establishing a new task force to enhance information sharing and co-operation to combat potential market abuse in both the spot and derivative markets.

“Market manipulation and its effects may occur across borders, between electricity and gas markets and across financial and commodity markets, including in emission allowances,” they said in a joint release.

Enhanced coordination between the regulators will support trading abuse investigations and enforcement “so that the rules are applied with vigour and in a convergent and holistic way,” they said.

Tougher oversight will also help preserve financial stability, they noted.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.