Recently energy companies in two European states were penalised for illegal trading activity. It is important for companies to avoid abusive trading behaviour and to have systems in place that can monitor and identify suspicious trading behaviour by their organisation. Equias successfully developed eTM, an electronic trade monitoring service for the energy trading industry. eTM helps trading companies to confidently comply with their trade monitoring obligations and to mitigate the risks of penalties.
‘With more than 25 organisations using this service, we are the market leader in this field’ mentions Hugh Brunswick, CEO of Equias. ‘We have data in 40 markets covering European electricity, natural gas and emissions, as well as global oil and coal markets’, he adds.
Hugh will present a case together with Carolien Wouters, Compliance and Contract Manager at PZEM Energy B.V. at ETRC taking place in London next week. With this presentation they will inform the public about the implementation of a trade surveillance system. Hugh says:’ At ETRC we want to raise awareness around spot market trade monitoring – spot markets are very physical in nature driving volatility as delivery approaches and produce lots and lots of trade and order data, meaning they tend to need separate treatment to future/forward markets. Equias are keen to stimulate debate within the eTM user group and the broader industry regarding how spot markets should be treated in the context of trade monitoring‘.
eTM specifically addresses the needs of the European energy traders and is fuelled by European energy data. eTM includes spot market activity, which differs from future/forward market behaviour. Spoofing and Off Market Pricing abuse patterns have already been extended for spot data and further analysis of how best to model energy spot markets is a focus area for the eTM User Group.