29.11.2024 – ACER’s consultation of the REMIT Implementing Regulation
The document “Evaluation of Responses to the Public Consultation of ACER on the Revision of the Annex of the REMIT Implementing Regulation” provides a comprehensive review of feedback from stakeholders regarding proposed changes to the REMIT Implementing Regulation Annex.
Below is a concise summary:
Purpose of the Document
The report evaluates input from a public consultation process aimed at revising the Annex of the REMIT Implementing Regulation (IR). This process ensures the data reporting framework aligns with market evolution and regulatory needs while considering feedback from stakeholders like market participants, regulatory bodies, and organized marketplaces.
Key Highlights
- Consultation Background:
- Regulation (EU) 2024/1106 introduced amendments to REMIT in May 2024, necessitating updates to the Implementing Regulation by May 2025.
- ACER conducted a consultation from June to September 2024 to gather stakeholder input.
- Stakeholder Participation:
- A total of 92 stakeholders, including market participants, organized marketplaces, and national regulators, contributed feedback.
- Responses highlighted a general preference for maintaining simplicity and minimizing administrative burdens.
- Key Feedback Themes:
- Alignment with Market Evolution: Stakeholders recommended flexibility in reporting requirements, avoiding unnecessary additions to data fields unless clearly justified.
- Data Reporting Formats: Strong opposition was voiced against transitioning from XML to alternative formats like JSON due to potential costs and system disruptions.
- Algorithmic Trading and System-Generated Orders: Concerns were raised about the feasibility and clarity of proposals to flag algorithmic trading or differentiate system-generated orders.
- Delivery Profiles: Suggestions were made to refine the reporting of delivery intervals without excessive restructuring of existing tables.
- Recommendations and Challenges:
- Simplification: Stakeholders emphasized maintaining a lean data structure while ensuring data quality.
- Consistency: Calls were made for a unified approach to naming conventions and data fields across markets and trading platforms.
- Implementation Timelines: Adequate lead time (e.g., 12 months) was requested for implementing any changes to allow stakeholders to adapt systems.
- Next Steps:
- ACER plans to use the consultation feedback in discussions with the European Commission.
- Further stakeholder engagement is expected, including roundtable meetings to finalize proposed changes.
Notable Insights from Responses
- Stakeholders were divided on adding new data fields, with many arguing that existing fields could be optimized to avoid complexity.
- There was broad support for optimizing the use of ACER codes for entity identification while reducing redundant fields.
- Algorithmic trading and direct electronic access (DEA) reporting were identified as areas requiring clearer definitions and limited additional reporting obligations.
