|Sleeve trade (REMIT definitions)|
|European Union Electricity Market Glossary|
The necessity to indicate whether the counterparty to the trade is a "Sleeve" (S) applies for the REMIT transactions and orders reporting purposes (Data Field No 12) when the trade was executed as an electronic or voice assisted trade on broker platforms.
Sleeve trade definition is the following: a market participant (A) would like to enter into a transaction with another market participant (B) which has advertised a price and quantity on the broker's screen.
However, because market participant A and B do not have an agreement to trade (or limited credit status), the broker may find a third market participant (C) who has an agreement to trade with both A and B and is willing to sleeve the trade (buy and sell the same contract simultaneously) for them.
There are two trades in this type of scenario: one trade between A and C (e.g. A buys from C) and another trade between C and B (e.g. C buys from B).
The result of the sleeve trade is four legs to be reported to the ACER as follows: A buys from C:
- A reports the trade as buyer and as aggressor (A); and
- C reports the trade as seller and as sleeve trade (S).
C buys from B:
- C reports the trade as buyer and as sleeve trade (S); and
- B reports the trade as seller and an initiator (I).
This field does not apply to orders to trade.
|Last Updated on Friday, 05 February 2016 13:32|