FREQUENTLY ASKED QUESTIONS
How does Equias plan to minimise the technical and operational impact of BREXIT upon the users of its services?
For more information and a specific guidance of an operational and technical nature with regard to each affected service, click here
Also review the ACER - RRM User Group Infosheet.
What is a Reporter and a Reportee?
Eligible energy market transactions need to be reported under regulatory regimes such as EMIR and REMIT. Both these regimes permit one counterparty (or an agent like a broker or exchange) to report on behalf of the other counterparty (or the agent’s clients). Bilateral trades executed directly between two counterparties are typically reported by only one party, who report on their own behalf and report on behalf of (ROBO) the other counterparty. In this ROBO relationship the reporting party is referred to as the Reporter and the other party as the Reportee.
What is an SMT?
An SMT is a market participant whose is typically not directly active in the wholesale trading market but who is probably a consumer or producer of significant amounts of energy requiring a relationship with one or more energy trader(s) who is active in the wholesale energy market. SMTs use their relationships with wholesale energy market participants to help to balance and manage their energy needs without the need to become active themselves in the wholesale energy market. There are a large number of SMTs in the European energy market, together SMTs form a market segment of their own called the SMT market segment or SMTs for short.
What Services does Equias offer to SMTs?
Equias wants to increase market participation and trading activity as this benefits the whole European energy market. Equias’ services to SMTs aim to minimize the costs and complexities associated with trading to encourage greater activity in the largest segment (the SMT market segment) of the European energy market. One barrier to participation is regulatory compliance and the reporting obligations associated with it. Equias initial service offers SMTs access to trade data reported on their behalf so that an SMT can efficiently and easily meet their compliance obligations – for free. However regulatory reporting is just one barrier to market for SMTs, for more information on Equias’ other SMT services please contact email@example.com
How much does the Equias’ regulatory reporting service for SMTs cost me as Reportee?
The service is offered free of charge, please see the Fee Schedule (page 8, CMS - SMT Pricing Schema 2018)
Why should I become a user of Equias’ regulatory reporting service for SMTs?
The Reportee is the end customer to the transactions or events which are logged and reported on their behalf by the Reporter. Nonetheless, under the various regulatory reporting regimes, the Reportee remains legally responsible for the correctness of all data reported under their name. By using the service as offered, you will be in the position to view what has been reported on your behalf, can query results and show to your external auditors that you have process controls in place.
How can I become a user of Equias’ regulatory reporting service for SMTs ?
You can become a user in any of the following three ways:
1. Ask your Reporter to contact Equias Service Team to follow up with you
2. Contact the Equias Service Team directly at firstname.lastname@example.org
3. Receive an on-line account and free access to the regulatory data being reported on your behalf, by signing up using our registration service https://www.portal.equias.org
What are the benefits of using Equias’ regulatory reporting service for SMTs?
An autonomous, efficient and effective way to monitor reporting of your trading activities in real time:
- Clear straightforward overview of your reported trades, per reporter and per jurisdiction, including regulatory results
- Overview including regulatory results accessible online and easy to download
- Full access to underlying details of both reported trades and status of all submitted reports within reporting process
- Easy access to reported files (XML) for compliance purposes
- No IT integration project required
What sort of contract do I have to enter into to become a user?
Users sign Equias’ standard Accession Agreement and the Annex 1 (being the Data Processing Agreement according to GDPR (DSVGO)). Both documents are the Equias standard documents applicable to all users and can be found here
What is the purpose of the Accession Agreement?
By signing the Accession Agreement, your company adheres to Equias GTCs which govern Equias services, including SMT services. You will need to complete your company name, address and contact information and check the services you wish to sign up for, eg, Central Matching Service SMT Services Phase 1 – Full Service (CMS SMT). All users of all Equias’ services sign-up to the exact same terms hence there are no special arrangements with any user – see further below for more detail.
What is the scope and purpose of the Data Processing Agreement?
Equias’ Data Processing Agreement (DPA) is a mandatory document for GDPR compliance and forms part of Equias’ standard terms signed with all Licensed Users of Equias’ services. The DPA contains information in relation to processing of personal data of Licensed Users by Equias as part of its service performance.
Why do all Equias users have to adhere to the same terms and conditions?
To explain this we need to go back to the history of Equias, leading to the background of Equias’ approach to services, terms and pricing.
Equias, formerly known as EFETnet B.V., was set up in 2004 by the European Federation of Energy Traders (EFET)to deliver the benefits of electronic data exchange standardisation which was first pioneered by EFET and its members. Since 2011 Equias has offered the Central Matching Service (CMS), a central platform offering Straight Through Processing to over 700 energy trading entities. The CMS, a one-stop-shop solution, simplifies operations, reduces internal support effort and costs and improves business usage by offering a fully outsourced set of services for electronic Confirmation Matching (eCM) and electronic Regulatory Reporting (eRR) for mandatory reporting. Equias was set up as a cost sharing vehicle for the energy trading industry and develops and offers advanced software for automated energy trading at the lowest cost, based on open market standards.
Regarding Equias contractual terms (GTCs), these were drafted at their inception in consultation with the industry and to ring-fence liability of Equias as a cost-sharing industry vehicle and were under German law to keep these terms back-to-back with Equias ´s main providers and liability cover arrangements. These GTCs have been generally accepted by the industry, including traders, brokers or exchanges over the years. Hence, Equias is not able to deviate or amend such contractual terms since, it needs to treat all Licensed Users equally and apply consistent pricing to all Licensed Users. This principle applies to all Equias’ services.
In relation to eRR REMIT reporting, Equias worked over several months with different stakeholders, including OMPs and MPs to standardize its terms and align them to standard reporting agreements published by industry associations (eg, the JEAG-LEBA REMIT Reporting Agreement). Reporters and Reportees (who sign up to Equias’ regulatory reporting service for SMTs) are subject to the same GTCs and sign the exact same Accession Agreement.
In summary, given our historic structure as industry cost-sharing vehicle we have a strict governance that prevents us from having any special arrangements with a Licensed User to ensure GTCs and pricing apply equally to all Licensed Users underpinned by a standard non-negotiable set of GTCs, schedules, annexes, fees or Accession Agreement
Is a smaller, less heavy or slimmed down version of the contracts available to me as small customer? Why are the contracts so lengthy?
No. All customers are governed by the same contractual rights and obligations as set out in the Accession Agreement, thus all use the same contract. You will receive a pre-filled version of the AA and DPA upon registering – which we ask that you sign and return.
What happens if Equias ever introduced fees for Equias’ regulatory reporting service for SMTs?
Equias’ regulatory reporting service for SMTs comes at no cost to you. Should Equias decide to introduce a cost, Equias is bound to announce this to you in writing, giving you 14 days’ time to terminate the agreement. After that period, standard termination rights are still available (three-month notice period and no additional hidden costs), should you wish to end your subscription to the service you can do so at any time.