Multi-purpose market monitoring system Scila Surveillance has been selected for an EU pilot project on monitoring wholesale energy markets. The findings of the pilot project will feed into an enhanced EU wide framework for the supervision of energy markets.
The "Energy Trade Data Reporting Scheme" project is coordinated by the Financial Services Working Group (FIS WG) of the European Energy Regulators (ERGEG/CEER) and managed and supported by the Austrian energy regulatory authority E-Control. Johannes Kindler, Vice-Chairman of Bundesnetzagentur, the German regulatory authority, and Chairman of the European Energy Regulators' FIS WG said: "The pilot project will be the cornerstone to develop guidelines and binding rules on transaction reporting and detecting market misconduct for European Energy Regulators in 2011."
Within the pilot, Scila Surveillance will import and analyze historical trade data from energy exchanges, brokers and traders selected for the project.
European market liberalization and integration has lead to an increase of activities in electricity and gas trading and the number of exchanges and other trading places for energy and related products in Europe has grown substantially over the last decade.
The EU Commission is now planning an enhanced, harmonized framework for the supervision of traded energy markets, to develop market transparency and ensure market integrity.
Objectives of this pilot project are to demonstrate the feasibility of an efficient and cost effective standardized trade data collection, storage and monitoring scheme and the development of a concept and representative examples for the analysis of trade data.
Walter Boltz, CEO of E-Control: "Finding a competent system was critical for this pilot project, which includes consolidation and analysis of trading in both spot and futures energy contracts. We chose Scila Surveillance since it has an excellent track record from other markets. Moreover it offers superior usability and flexibility to in short time adapt to the specific needs connected to the monitoring of energy markets."
"We're proud to be involved in this project that ultimately aims at securing a well-functioning European energy market", said Jan Arpi, CEO of Cinnober. "And we are happy that Scila Surveillance has proved its capabilities in yet another market, demonstrating its great flexibility as a multi-asset surveillance system."
Scila Surveillance was launched in 2009 and has already been implemented at seven marketplaces for the monitoring of trading in equities, commodities, derivatives, FX, CFDs, and now energy contracts.