BRUSSELS (dpa-AFX) – The wholesale energy market in the European Union should be better protected against market manipulation. Representatives of the governments of the member states and the European Parliament agreed on new rules in Brussels on Thursday. Among other things, they provide for stricter requirements for market participants from non-EU countries. In addition, the Agency for the Cooperation of Energy Regulators (Acer) is to be given a greater role in investigating important cross-border cases in order to punish violations.
The current Spanish EU Council Presidency described the agreement as “good news for consumers and companies – especially in times of volatile energy prices.” The new regulation will significantly strengthen the framework for combating and preventing market abuse.
The background to the planned rule changes is the assessment that financial instruments traded on the energy markets are becoming increasingly important. This increases the risk of unwanted insider trading and market manipulation.
In addition, the risks that arise from the use of technology for trading should also be prevented. According to EU information, many market participants use algorithmic trading and high-frequency algorithmic trading techniques that involve limited or no human intervention. Acer should therefore be able to monitor the market better.
The agreement must now be confirmed by the Council of Member States and the plenary session of the European Parliament. However, this is considered a formality./aha/DP/he