|Intragroup brokers - need to bother for REMIT reporting?|
|Monday, 24 November 2014 23:26|
Do the intragroup brokers qualify as organised market places for REMIT reporting purposes and what are potential consequences?
Among the four exclusions from the mandatory electricity and gas transactions' and orders' reporting to ACER, as stipulated by Article 4(1)(a) of the draft REMIT Implementing Regulation, appear also the intragroup contracts. The said intragroup contracts are intended to be reportable only at ACER's reasoned request and on an ad-hoc basis.
It is noteworthy, however, the said exemption applies unless the contract is concluded on organised market place.
Given an extensive character of the category "organised market place" (capturing in particular "brokers and other persons professionally arranging transactions"), it follows, where an intragroup contract is concluded on an intragroup organised market place (for instance, with the use of the intragroup broker), it must be reported to ACER like any other contracts.
Moreover, for such intragroup contracts concluded with the use of the intragroup broker applies shortened 9 months reporting start date (of REMIT Implementing Regulation entry into force) and not 15 months as for contracts concluded outside organised market places).
So, intragroup brokers need to clear their legal status under REMIT reporting procedures.