|REMIT - likelihood of information having a significant price effect|
Article 2(1) of REMIT defines "inside information" as:
- information of a precise nature,
- which has not been made public,
- which relates, directly or indirectly, to one or more wholesale energy products and
- which, if it were made public, would be likely to significantly affect the prices of those wholesale energy products.
From the above explicit definition clearly follows that information is deemed to constitute inside information only if the circumstances on which the information is based would, if it became publicly known, likely have significant effect on the prices of a wholesale energy product.
ACER in its guidelines understands the criterion of significant price effect to narrow the wide notion of information down to that information which is crucial enough in order to have a potential to significantly affect prices.
ACER made, moreover, clear that the likelihood to significantly affect the prices of wholesale energy products is sufficient in order for the information to be qualified as inside information, hence, no actual price effect is required.
Such an assessment has to take into consideration the anticipated impact of the information in light of the related market participant's activity, as well as the market situation, including specificities of the market (size of the market, balance of demand and supply, steepness of the relevant offer curve - correlated with demand but also with already existing production limitations, information on supply variation already published, time of day - e.g. weekday/weekend, office hours/out of office hours, etc.) and any other market variables likely to affect the related wholesale energy product in the given circumstances.
|Last Updated on Tuesday, 22 March 2016 00:31|