CME EUROPEAN TRADE REPOSITORY REMIT REGISTERED REPORTING MECHANISM (RRM) FREQUENTLY ASKED QUESTIONS (FAQS)

Transcription

1 CME EUROPEAN TRADE REPOSITORY REMIT REGISTERED REPORTING MECHANISM (RRM) FREQUENTLY ASKED QUESTIONS (FAQS)

2 CONTENTS 1. Overview of REMIT What is REMIT? What is the purpose and aim of REMIT? When did REMIT come into force? What are wholesale energy markets? Who are the regulators behind REMIT? What is the impact of the Implementing Act published on 7 January 2015? What is a Market Participant and an Organised Market Place? What are the REMIT reporting requirements? Summary of REMIT reporting requirements When does the reporting requirement commence? What are the registration requirements for a Market Participant? How does a Market Participant report? Is there a concept of Delegated Reporting in REMIT similar to EMIR? What is a Registered Reporting Mechanism (RRM)? What Schema or Format is required for reporting by or to an RRM? Does ARIS provide Acknowledgement and Rejection Messages? CME ETR RRM Solution What is CME European Trade Repository? Will CME be offering a REMIT Registered Reporting Mechanism (RRM)? Why choose CME ETR RRM? What services will CME ETR Registered Reporting Mechanism (CME ETR RRM) offer? When will CME ETR RRM Test and Production systems be available? How will CME ETR RRM interact with ACER? What data formats do you support for data submission? What file delivery methods do you support? What are the fees for the CME ETR RRM service? What type of reports do you provide? What data fields will be sent to ACER? How frequently will data be sent to ACER? What is the exception management process for rejected trades by CME ETR RRM? What is the exception management process for rejected trades by ACER? Will clients be able to access the CME ETR RRM via a User Interface? What validations will CME ETR RRM undertake on the submitted data? What is the requirement for trades which are also reportable under EMIR? What are the responsibilities of Market Participants for complete and non-duplicative reporting? What services will CME Europe, as an Organised Market Place (OMP), offer? How can I keep up-to-date with CME ETR RRM s service offering? What are the fees for the CME ETR RRM service? 14

3 3. ONBOARDING AND LEGAL DOCUMENTATION What are CME ETR RRM business hours? How long does your service retain transaction data? Do you have a dedicated client onboarding team? What are the steps required for onboarding? Are there any pre-requisites for onboarding? What information will CME ETR RRM request from us? How long does onboarding usually take? Are there any deadlines or cut-off dates? What legal documentation is required to connect to CME ETR RRM? What are the key differences between REMIT and EMIR reporting? 17

4 1. OVERVIEW OF REMIT 1.1 What is REMIT? REMIT comprises Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency and the relevant implementing legislation made under it (REMIT). REMIT is part of the third package of rules aimed at moving the European Union towards a single wholesale market and introduces a sector-specific wholesale energy market monitoring framework to detect and prevent market abuse, to ensure market integrity and transparency for the benefit of European energy consumers. The REMIT regime is specific to EU wholesale energy markets it covers wholesale gas and electricity only (oil and other energy sources are excluded). 1.2 What is the purpose and aim of REMIT? REMIT seeks to ensure that consumers and Market Participants (MP) (as defined in REMIT) have confidence in the integrity of electricity and gas markets, that prices set reflect a fair and competitive interplay between supply and demand, and that no profits can be drawn from market abuse. REMIT seeks to introduce transparency to help foster open and fair competition in wholesale energy markets for the benefit of final consumers of energy. Energy market monitoring, disclosure and market abuse practices have already been implemented in EU member states. The latest implementing measures of REMIT introduce a reporting and registration obligation for Market Participants. REMIT has four pillars for the purposes of providing greater protection for users of wholesale energy markets, the implementation of which has been staggered since 2011: 1. Inside Information 2. Market Manipulation Prohibition 3. Market Participant Registration 4. Data Reporting 1.3 When did REMIT come into force? The obligation to publish inside information and prohibition of market abuse has been in force since The latest REMIT Implementing Act was published on 7 January 2015 and includes a reporting and registration requirement for Market Participants that comes into force in October See Commission Implementing Regulation (EU) No 1348/2014 of 17 December 2014 on data reporting implementing Article 8(2) and Article 8(6) of REMIT (the Implementing Act) 1.4 What are wholesale energy markets? Wholesale energy products include wholesale gas and electricity spot contracts and derivatives irrespective of how and where they are traded and regardless of whether they are physically or financially settled. For example, it would include cash settled futures relating to EU gas, even if traded outside the EU by a non-eu person. Wholesale energy products include: a) Contracts for the supply of electricity or natural gas where delivery is in the European Union. b) Derivatives relating to electricity or natural gas produced, traded or delivered in the EU. The current view is that this refers to where the underlying is traded. So a Henry Hub future would not be a wholesale energy product even if it were to be admitted to trading on an EU exchange. A NBP Natural Gas futures contract would be a wholesale energy product whether listed on an EU or a US exchange. c) Contracts relating to the transportation of electricity or natural gas in the Union. d) Derivatives relating to the transportation of electricity or natural gas in the Union. The current view is that it refers to derivatives on the cost of transportation in the EU, regardless of where the derivative is traded. e) Excludes supply and distribution for use of final customers although this is only a carve out for certain consumer facing utilities. European Trade Repository Registered Reporting Mechanism FAQ 4

5 1.5 Who are the regulators behind REMIT? The EU Agency for the Cooperation of Energy Regulators (ACER) is the lead regulator and ultimate destination for all reports under REMIT. ACER was established by Regulation (EC) No 713/2009 of the European Parliament and Council. ACER is best placed to carry out the monitoring as it has both a union-wide view of electricity and gas markets and systems in the EU. National Regulatory Authorities (NRA) will continue to monitor and enforce at a national level and can continue to collect additional data for national purposes. 1.6 What is the impact of the Implementing Act published on 7 January 2015? REMIT brings in additional reporting requirements and a registration requirement for Market Participants. As REMIT is broad in scope a significant number of firms / venues will be affected. 1.7 What is a Market Participant and an Organised Market Place? Market Participants are any person or entity, including Transmission Service Operators (TSO), who enters into transactions including the placing of orders to trade, in one or more wholesale energy markets (Article 2(7) REMIT). A wholesale energy market is any market within the European Union on which wholesale energy products are traded. Both agents and principals will be MPs. The ACER Transaction Reporting User Manual (TRUM) sets out how data field 10. Trading capacity of the Market Participant or counterparty requires the MP to identify if they are an agent or principal. Non-EU persons trading wholesale energy products are likely to be caught under REMIT as a Market Participant. This is supported by the examples provided in the TRUM. Consequence of Market Participant status: registration requirement with NRA in member state in which they are established or resident or if not established or resident in the Union i.e. Non-EU MP, in the member state in which they are active. If an MP is active in more than one member state then it should register with the NRA located where it has its primary establishment. A person is only required to register with one competent authority; and reporting obligations. Organised Market Places (OMP) are systems or facilities which bring together (or facilitates the bringing together of) multiple third party buying/selling interests in wholesale energy products in a way that results in a contract (and this includes trading venues as defined under MiFIR). ACER has published a list 60 OMPs (as at July 2015) which consist of exchanges, execution venues and brokers. This list does not currently include any non-eu exchanges or brokers. However, ACER has advised that further names may be added to this list. The Implementing Act introduces obligations for OMPs and for Market Participants trading on OMPs: The Implementing Act (Article 6) requires that Market Participants shall report details of wholesale energy products executed at organised market places including matched and unmatched orders to ACER through the organised market place concerned, or through trade matching or trade reporting systems. The organised market place where the wholesale energy product was executed or the order was placed shall at the request of the Market Participant offer a data reporting agreement. Consequences of OMP status include: requirement to offer market users a data reporting agreement (Article 6, Implementing Act); and being treated as persons professionally arranging transactions (PPAT) this means that the OMP has an obligation to (1) report suspicious transactions and (2) establish monitoring systems to detect breaches of REMIT insider dealing and market manipulation prohibitions. European Trade Repository Registered Reporting Mechanism FAQ 5

6 1.8 What are the REMIT reporting requirements? The Implementing Act requires that Market Participants must supply ACER with a record of their transactions and orders to trade in wholesale energy products. Wholesale energy products cover both spot and derivative trades and orders, and include: (1) contracts for the supply or delivery of electricity and natural gas where delivery is in the European Union; (2) derivatives relating to electricity or natural gas produced, traded or delivered in the European Union; and (3) contracts or derivatives relating to the transportation of electricity or natural gas in the European Union. Efficient market monitoring requires regular and timely access to records of transactions as well as structural data on capacity and use of facilities for production, storage, consumption or transmission of electricity or natural gas. Market Participants, including transmission system operators (TSOs), suppliers, traders, producers, brokers and large users who trade wholesale energy products should be required to provide that information to ACER. The obligation placed on MPs and OMPs to report orders to trade is new and significant when compared with existing reporting obligations under EMIR. REMIT is a sector specific regulation and therefore (unlike other regulations such as EMIR) depend on the domicile of the relevant entity. Therefore even if a firm is based outside of the European Union they are still captured by the REMIT reporting requirements if they place orders or trade in contracts in scope of REMIT. Under Article 8 of REMIT, an MP or person or authority listed in points (b) to (f) of paragraph 4 on their behalf, shall provide ACER with a record of wholesale energy market transactions, including orders to trade. The information reported shall include: The precise identification of the wholesale energy product bought and sold The price and quantity agreed The dates and time of execution The parties to the transaction The beneficiaries to the transaction Any other relevant information Note: whilst the overall responsibility to report lies with the MP, once the required information is received from a person or authority listed in points (b) to (f) of paragraph 4 the reporting obligation on the MP in question shall be considered to be fulfilled: a) Market Participant b) Third Party acting on behalf of the Market Participant c) Trade Reporting System d) Organised Market, trade matching system or person professionally arranging transactions e) Trade Repository (TR) registered or recognised under EU Regulation 2012/648 (EMIR), such as CME ETR f) Competent Authority Persons who have reported transactions in accordance with EU Directive 2004/39/EC (MiFID) or EMIR shall not be subject to double reporting obligations relating to those transactions. However, details outside of this, such as orders, will still need to be reported to ACER under REMIT. However there is a clarification required by Market Participants as to which trade has been reported under the EMIR reporting solution they have. The general practice for OTC cleared trades is for either the EMIR market participant to directly report or utilise delegated reporting via their clearing member. For cleared trades as EMIR is T+1 most firms report the trade between themselves and the clearing member, however, REMIT requires the reporting of the original transaction between the Market Participant and the other Market Participants. It is prudent to ascertain which trade has been reported under your EMIR solution to ensure that this satisfies the REMIT reporting requirements. Article 8 (5) of REMIT requires that Market Participants shall provide ACER and the relevant NRA with information related to capacity and use of facilities for production, storage, consumption or transmission of electricity or natural gas or related to capacity and use of Liquefied Natural Gas (LNG) facilities, including planned or unplanned unavailability of facilities for purpose of monitoring trading in wholesale energy markets. European Trade Repository Registered Reporting Mechanism FAQ 6

7 1.9 Summary of REMIT reporting requirements Who has to report? What trades & orders must be reported? What details must be reported? To whom? How quickly? Both MPs party to wholesale energy market transactions (both spot & derivative contracts). Parties should be able to report on each other s behalf or use services of a third party for this purpose. OMPs have an obligation under the Implementing Act to offer a data reporting agreement to Market Participants, therefore the OMP will report on behalf of MPs including matched/unmatched orders. This does not necessarily mean that the OMP itself must carry out the reporting activity. REMIT is, unlike EMIR, not simply limited to EU persons. Instead, it adopts a market-centric approach and applies to those who trade European gas or electricity contracts regardless of domicile. MPs will be able to outsource their REMIT reporting to Registered Reporting Mechanisms (RRM) and/or EMIR-registered TRs in the case of EMIR reportable derivatives such as CME European Trade Repository (CME ETR). Transactions in wholesale energy products (WEP), including orders to trade, that are concluded, modified or terminated. The TRUM sets out an overview of reportable contracts. Derivatives includes options, futures, swaps and any other derivatives of contracts relating to electricity or natural gas produced, traded or delivered in the EU or relating to the transportation of electricity or natural gas in the EU. Standardised contracts are products admitted to trading on an OMP or which can be cleared. ACER will maintain a list of standard contracts. A unique transaction ID will be assigned by the OMP and will be expected to be provided. Non-standardised contracts are products traded over-the-counter (OTC) rather than on an exchange. A unique transaction ID must be assigned to trades by the two MPs. Block trades entered into subject to exchange rules would be treated as executed on the OMP and would be reportable under REMIT. Exchange for related physical (EFRP) trades would be treated as two contracts, one physical executed outside the OMP (7 April 2016) and one future executed on the OMP (7 October 2015). Note: The REMIT Implementing Act Article 3(1) lists the types of contracts that must be reported. Wholesale energy products bought and sold; price and quantity agreed; dates and times of execution; parties/beneficiaries of the transaction; and other relevant information. 58 data fields for transactions in standardised supply contracts, and 45 data fields for transactions in non-standardised supply contracts some overlap with the EMIR fields. More details can be found in the TRUM. Data must be reported to ACER (unlike EMIR, which requires reporting to a TR). TRs and Registered Reporting Mechanism (RRM) can act as an intermediary between a Market Participant and ACER. RRM must apply and register with ACER in order to provide the service. Role of TR in relation to REMIT is different: With EMIR, the end destination of the data is the TR Under REMIT, any RRM is a conduit for sending the data to ACER and the TR will provide access to the data to ACER. Note: Where transactions have been reported in accordance with Article 26 of MiFIR or Article 9 of EMIR, in-scope entities obligations under REMIT in relation to reporting those details shall be considered fulfilled. However, details outside of this, such as orders, will still need to be reported to ACER. Standardised contracts: orders and transactions must be reported as soon as possible but no later than the working day following conclusion, modification or termination of the contract (EOD T+1). Orders placed in brokers voice operated services and not appearing on electronic screens are reportable on ACER s request only. Non-standardised contracts: no later than one month following the conclusion of the transaction, and as soon as possible but no later than the working day following the modification/termination of the transaction. European Trade Repository Registered Reporting Mechanism FAQ 7

8 How? Out of Scope Backloading? Lifecycle events? Reports are made to ACER s IT system: ACER REMIT Information System (ARIS) ARIS collects, stores, analyses potential market misconduct (insider trading or market manipulation) and disseminates data to relevant parties. The TRUM describes a four tier process by which ARIS will handle data. ACER will provide reporting entities with receipts confirming the completeness and accuracy of the reports submitted. No Action Relief letter published on the 7 January 2015 recommends that the following data will not be requested at least until 31 December Contracts for balancing services in electricity and natural gas. OTC intragroup contracts and certain OTC contracts below a threshold defined by REMIT Implementing Acts and details of transactions in relation to those contracts from list of reportable contracts. Article 4(1) stipulates that unless transactions are concluded at an OMP, the following contracts and details of transactions in relation to those contracts shall be reportable upon reasoned request of ACER. A) Intragroup contracts, B) contracts for the physical delivery of electricity produced by a single production unit with a capacity equal to or less than 10MW or by production units with a combined capacity equal to or less than 10MW, C) contracts for the physical delivery of natural gas produced by a single natural gas production facility with a production capacity equal to or less than 20MW, D) Contracts for balancing services in electricity or natural gas. Contracts concluded before the REMIT reporting obligation becomes applicable and remain outstanding on that date must be reported to ACER within 90 days of the REMIT reporting obligation becoming applicable for those contracts. Back-loading will apply in respect of orders to trade, as well as trades. The back-loading reporting deadlines are 7 January 2016 for contracts traded on OMPs and 7 July 2016 for contracts traded outside OMPs. The reportable details shall only include data which can be extracted from Market Participants existing records. They shall at least comprise the following characteristics of the relevant transaction: duration; delivery and settlement rules; quantity; dates and times of execution; transaction prices; means of identifying the wholesale customer concerned; and specified details of all unsettled gas or electricity supply contracts and gas or electricity derivatives. The REMIT transaction reporting lifecycle events include: the submission of a contract or an order to trade (trade or order report) for the first time will be identified as new ; the modification of details of a previous trade or order report, which will be identified as modify ; the cancellation of a wrongly submitted trade or order report, which will be identified as error ; and the termination of an existing contract or order to trade, which will be identified as cancel. There are two categories of lifecycle events reported under REMIT: lifecycle event related to trades (trade report) if a contract is amended after initial execution (e.g. increase volume or price) and this is agreed by the counterparties through a broker, the amendment must be reported by the broker. Lifecycle events that happen bilaterally without involving a broker, should be reported by the Market Participants. lifecycle event related to orders to trade (order report). More information on this can be found in the TRUM and Annex III of the TRUM (Annex II of the TRUM will contain examples of order modification but this has not yet been released). European Trade Repository Registered Reporting Mechanism FAQ 8

9 1.10 When does the reporting requirement commence? There will be a phased implementation of reporting requirements: from 7 October 2015, the reporting obligation will commence for reportable products relating to the supply of electricity or natural gas with delivery in the EU which are executed at OMPs (including matched and unmatched orders); and from 7 April 2016, the reporting obligation will commence for other reportable wholesale energy market contracts (OTC standard and non-standard supply and derivative contracts, transportation contracts) and other fundamental data 1.11 What are the registration requirements for a Market Participant? All Market Participants must be registered in the Central European Registry for Energy market Participants (CEREMP). This database is run by ACER but registration occurs at a local level via the NRAs. NRAs had a deadline of the 17 March 2015 to have the registration systems available and it was recommended that all MPs register by the 17 June Completion of the first stage issues the Market Participants with an ACER Code, which is a unique identifier. The second stage requires MPs to provide more detailed information. Registration must be complete prior to reporting and also more importantly registration must be completed prior to the 7 October 2015 or firms should not trade the REMIT products as they will be in non-compliance with the regulation How does a Market Participant report? REMIT reportable data must be sent to the ACER ARIS system, there are a variety of routes that Market Participants can take in order to submit and this depends on the source, type and also MP preference. There are six main routes for reporting 1. Via a Registered Reporting Mechanism (RRM) 2. Via an EMIR Trade Repository 3. Using an Organised Market Place via a data reporting agreement 4. Directly but only via registration as an RRM 5. Fundamental Data via a System Operator and in some cases via an RRM. 6. Electricity Transparency Regulation (ETR) 543/2103 requiring the reporting of transparency data to ENTSO-E For the 7 October 2015 reporting requirement MPs cannot submit data directly to ACER. Reporting must take place via a RRM, or if the transaction has already been reported to an EMIR Trade Repository (TR) then ACER will obtain the information from the TR. OMPs are obliged under the REMIT Implementing Act to offer their Market Participants a Data Reporting Agreement (Article 6(1)) for all data that originates on their platform. Fundamental Data is usually sourced from the TSOs and other system operators and they will in most cases send the data to ACER. Field specific information is defined in the REMIT Implementing Act and the field values can be found in the TRUM available on the ACER website. The TRUM is used by RRMs to ascertain how to report to ARIS but Market Participants would be advised to read through the TRUM to understand the data requirements. The TRUM provides 4 different contract types: Format 1 Standard Supply Contracts Format 2 Non-Standard Supply Contracts Format 3 Electricity Transportation Contracts Format 4 Gas Transportation Contracts Each of the Formats contains a different set of fields that will need to be populated European Trade Repository Registered Reporting Mechanism FAQ 9

10 1.13 Is there a concept of Delegated Reporting in REMIT similar to EMIR? REMIT allows for Delegated Reporting similar to EMIR where third parties, such as an OMP or Service Provider, can report on behalf of Market Participants or one Market Participant can report on behalf of another. REMIT does go one step further via the obligation on an OMP to provide a Data Reporting Agreement to Market Participants who are placing orders to trade and executions of trades on their systems. This Data Reporting Agreement requires that the OMP facilitate or provide a facility for reporting i.e. the OMP can become an RRM or partner with an RRM or provide the files to the client for submission to another RRM. Under EMIR the obligation to report cannot be delegated but the function can i.e. the ultimate responsibility to ensure accurate and timely reporting is on the counterparties to the trade under EMIR, notwithstanding the delegation. Under REMIT the responsibility for a failure to pass on the accurate data is on the entity that is undertaking the reporting. However there is a requirement to ensure that the data reported is complete, accurate and timely i.e. the relevant Market Participant must undertake some form of reconciliation on the information that has been submitted on their behalf. There is a concern among the industry that the OMP may not have transparency over the full data set to enable the reporting of the required fields, for example the Beneficiary ID may not be known by the OMP if the beneficiary is not the Market Participant. Also post trade modifications and early terminations are not carried out on the OMP, but between the Market Participants. Since the OMP will not have transparency over these events then Market Participants will need to submit these to an RRM to send to ACER. OMPs can charge for this service if they so wish if they are reporting themselves or if they provide the Market Participant with the files for submission to a RRM. Market Participants can decide whether to use the OMP service What is a Registered Reporting Mechanism (RRM)? In simple terms an RRM shares certain common features with an EMIR Trade Repository. However, an RRM sends data directly to the ACER ARIS system and handles receipts for each submitted message. An RRM must be registered and be approved by ACER. To become an RRM entities must comply with the ACER technical requirements and undertake testing with the ARIS system 1.15 What Schema or Format is required for reporting by or to an RRM? ACER has defined its own XML Standard schema which must be used by RRMs for sending data to ARIS. Most RRMs are requesting that entities submit their data in the ACER XML schema Does ARIS provide Acknowledgement and Rejection Messages? ARIS will provide receipts for each data submission made into the system in a standard form. These receipts are sent to the submitting RRM who should then provide transparency of these receipts back to the Market Participant. This will assist with exception management and also reconciliations. European Trade Repository Registered Reporting Mechanism FAQ 10

11 2. CME ETR RRM SOLUTION 2.1 What is CME European Trade Repository? CME European Trade Repository (CME ETR) is the trading name of CME Trade Repository Limited. CME ETR is a UK private limited company incorporated in England and Wales, with registered address Fourth Floor, One New Change, London EC4M 9AF, United Kingdom. CME ETR is a wholly owned subsidiary of CME Group. CME ETR was established by CME Group in 2013 to provide a reporting solution for market participants affected by the reporting obligations under EU Regulation No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (known as the European Market Infrastructure Regulation or EMIR). CME ETR is a registered trade repository (TR), authorised and supervised in the EU by the European Securities and Markets Authority (ESMA) for the purpose of receiving reports in derivative trades entered into by market participants subject to the reporting obligation under Article 9 of EMIR. CME ETR forms a part of CME Global Repository Services (CME GRS). CME GRS offers a suite of efficient, cost-effective regulatory reporting solutions for all market participants, covering Swap Data Repository (SDR) services relating to US Dodd-Frank reporting requirements, Canadian Reporting (CTR) in Manitoba, Quebec and Ontario and also European trade repository services relating to EMIR reporting for EU customers. CME GRS has 400+ global clients and has recorded more than 200 million transactions since its launch in December CME GRS is committed to world class real-time technology and customer support and offers a common front end experience for Dodd-Frank, Canada, EMIR and now REMIT reporting that is connected to CME group trading, clearing and reporting services across Europe and the US. 2.2 Will CME be offering a REMIT Registered Reporting Mechanism (RRM)? CME ETR will become a Registered Reporting Mechanism (RRM) for the purposes of reporting to ACER trade and order information in relation to wholesale energy products under REMIT. Once approved as an RRM by ACER, CME ETR will offer a RRM service to affected REMIT Market Participants, OMPs and service providers (CME ETR RRM).Please contact us for the latest information on our offering. 2.3 Why choose CME ETR RRM? CME Group is one of a very select group of financial institutions able to offer market participants execution, clearing and trade reporting services. As a highly regulated global organisation operating exchanges, clearing houses and repositories across multiple jurisdictions, CME is a long-time veteran operator of regulatory reporting to authorities around the world. Furthermore, CME has deep working knowledge and in-house expertise spanning across all of the major derivative asset classes in both ETD and OTC traded products, as well as offering a suite of energy products for trading: CME ETR RRM has the advantage of leveraging CME s considerable experience of Dodd-Frank, EMIR and Canadian reporting. CME operates successful Swap Data and TRs and has therefore worked through many of the initial kinks associated with trade reporting. As a result of this experience and CME s capabilities in trading, clearing and reporting, CME ETR RRM represents a complete solution that is uniquely positioned in the market to offer operationally sound, highly efficient, low cost reporting services built on proven systems, processes and relationships to all REMIT Market Participants, OMPs and service providers, whether or not they currently clear or trade products through CME. In addition, the numerous and diverse European market participants currently trading and clearing with CME will experience an unparalleled level of ease, simplicity and certainty when looking to discharge their reporting obligations under REMIT by choosing to report their trades via CME ETR RRM. In particular, existing CME customers will benefit from the strong connectivity of CME ETR RRM to CME s trading venue in Europe (CME Europe). This connectivity makes the challenge of trade and order reporting easier at CME when compared to RRM solutions whose systems are not closely integrated with a trading venue. The CME ETR RRM offering will also aid participants in reporting OTC bilateral trades, affording greater simplicity when compared to our competitors. The CME ETR Business Team is available to provide further details of the service, including pricing structures for Market Participants, OMPs and Third Parties. You can contact the Business Team at: Repository@cmegroup.com European Trade Repository Registered Reporting Mechanism FAQ 11

12 2.4 What services will CME ETR Registered Reporting Mechanism (CME ETR RRM) offer? CME ETR RRM will offer services to Organised Markets Places (OMPs) and third party service providers as well as firms trading (Market Participants) in wholesale energy products for the reporting of filled and unfilled orders and trades. All customers signing up to the RRM service the service will submit their order and trade data to CME ETR RRM, which, will process the data, and submit to ACER via the ARIS system. Market Participants will be able to send trade and order data directly to the CME ETR RRM, using CME ETR RRM s technical specifications for Standard and Non-Standard contracts. These will be made available shortly on the CME ETR RRM website: CME ETR RRM will be providing clients access to the data reported to ACER via our web based CME ETR RRM platform. 2.5 When will CME ETR RRM Test and Production systems be available? CME s RRM offering will take a phased approach to reflect the implementation timelines of contracts traded on an OMP (reporting start date 7 October 2015) and contracts not traded on an OMP (reporting start date 7 April 2016). In anticipation of the reporting start date, a test environment will be made available to users in early September 2015 (exact dates to be confirmed and subject to sign-off by ACER of CME ETR RRM s own testing with ACER s ARIS system). The Production environment will be available for client use on the 7 October How will CME ETR RRM interact with ACER? Data sent to CME ETR RRM, either via an OMP or service provider or directly by a Market Participant, will be sent to ACER s ARIS REMIT reporting system, which will then process the order and trade information and send back to CME ETR RRM response files indicating that the information has been successfully received. A user interface will be available for users to retrieve their trade and order data and view the ARIS responses. 2.7 What data formats do you support for data submission? We accept reports transmitted in ACER XML (in provided templates) format. 2.8 What file delivery methods do you support? We accept delivery via secure FTP. 2.9 What are the fees for the CME ETR RRM service? Our fee schedule for the CME ETR RRM service is available on our website at What type of reports do you provide? CME ETR RRM offers a flexible approach to generating reports. Users can either use the generic reports provided or, alternatively, customise reports. Customisations can be made by any field within the file i.e. counterparty, date, product, etc. These customised reports can then be saved for future use. Additionally, because CME ETR RRM operates a real-time solution, any transaction that is reported to and accepted by CME ETR RRM will be reflected in the system and User Interface almost instantly. Reports can then be run or scheduled on an ad hoc or end of day basis. These reports will assist users in carrying out their own reconciliations to ensure reporting compliance What data fields will be sent to ACER? ACER has published full details of the fields which must be reported for the different types of contracts (including Standard and Non-Standard contracts and their lifecycle events) in its TRUM. The TRUM and other information can be accessed from the ACER REMIT Portal: European Trade Repository Registered Reporting Mechanism FAQ 12

13 2.12 How frequently will data be sent to ACER? Data will be sent by CME ETR RRM to ACER on a daily basis to meet the T+1 reporting deadline What is the exception management process for rejected trades by CME ETR RRM? CME ETR RRM has a real-time user interface; all transactions submitted will be viewable immediately after submission. This is dependent upon the method of submission: If uploaded via Secure FTP, firm can pull confirmation data from an outbound Secure FTP file. This file would contain acceptances as well as highlight any issues with any line items What is the exception management process for rejected trades by ACER? Upon submission of trades to ACER s ARIS system, ARIS will produce response files which will detail the acceptance or rejection of orders and trades submitted by the RRM. CME ETR RRM will make these response files available to reporting firms via the user interface and/ or via the firm s CME ETR RRM sftp folder Will clients be able to access the CME ETR RRM via a User Interface? The CME ETR RRM will provide clients with access to a User Interface (Web Portal). Access to the web portal will allow users to (dependent on access permissions): Download ad hoc flexible reports; and Customise and save queries for streamlined future access. A demo of the CME ETR RRM User Interface will be made available in due course. Clients who are not already familiar with the CME User Interface may wish to view an online demo of the CME ETR User Interface, which is very similar. This demo can be found here: What validations will CME ETR RRM undertake on the submitted data? CME ETR RRM will undertake certain validations which are required for differing purposes: 1. User validation This is required to ensure that the submitting party has been granted permission to submit trades. 2. Field level validations For trade and order files submitted, field validation takes place to ensure that they are compliant with the required format in order to meet the REMIT reporting mandate. For example, Data Field 1 (ID of the Market Participant of counterparty) is mandatory, therefore it has to be available on the submission and only the types of values outlined in ACER s REMIT documentation are acceptable any invalid entry will get rejected and the trade will not be uploaded or sent on to ACER. Notifications are sent highlighting the specific error message. 3. Conditional validations These are validations on inter-related information or conditional information. 4. Catchall error handling This routine catches all the errors that cannot be anticipated such as unexpected data format, network glitches, sudden database outage etc. The error handler informs the user about unexpected error and asks him/her to contact the system administrator for further assistance What is the requirement for trades which are also reportable under EMIR? Transactions reported in accordance with MiFID or EMIR shall not be subject to double reporting obligations relating to those transactions. However, details outside of this, such as orders, will still need to be reported to ACER. Trades which have been reported under EMIR are not required to be enriched with additional REMIT-specific data, but will be supplied by TRs to ACER with the EMIR field-set. TRs and RRMs are not individually required to cross-reference the data that they hold with one another. ACER will collect all the data it is entitled to under REMIT and link together related orders and trades in its own systems. ACER as an NCA under EMIR will retrieve the data from EMIR TRs. European Trade Repository Registered Reporting Mechanism FAQ 13

14 2.18 What are the responsibilities of Market Participants for complete and non-duplicative reporting? REMIT specifies that, although responsibility for transmitting data to ACER is upon the OMP and the RRM where it is delegated to them by the Market Participant, the responsibility for ensuring the completeness and correctness of reporting rests with the Market Participant. Additionally, REMIT specifies that over-reporting should be avoided where possible. Therefore, where Market Participants are delegating REMIT reporting to multiple OMPs/ RRMs (and potentially EMIR reporting to multiple Clearing Members/ TRs), it is the responsibility of the Market Participant to ensure that all reportable activity under these regimes has been correctly reported and to prevent over or duplicative reporting What services will CME Europe, as an Organised Market Place (OMP), offer? CME Europe Limited (CME Europe) is CME Group s European exchange and pursuant to Article 6 of the Implementing Act has been categorised as an OMP. In line with the regulation, CME Europe (as an OMP) will be offering its clients a Data Reporting Agreement which will facilitate the reporting of the trades and orders that CME Europe has transparency over. CME Europe will be using CME ETR as its Registered Reporting Mechanism to facilitate the reporting to ACER s ARIS system. The CME ETR RRM will also provide reporting services to all Market Participants and other OMPs who wish to report the orders and trades to ACER in line with the REMIT reporting obligation. CME Europe will be offering reporting to all members and clients of members (Market Participants) for orders and trades that are placed on CME Europe and this will be provided free of charge, i.e. CME Europe will be contracting with CME ETR RRM and will not be passing on any associated charges to its members or clients of members. CME Europe reserves the right to impose a charge for this service in the future. Access to the data reported by CME Europe on behalf of the customers of this service will be made available to such persons by registering with CME ETR RRM. There is no charge imposed by CME ETR RRM for view only access to the data, although CME ETR reserves the right to impose a charge for this service in the future. Note that trades executed outside of CME Europe (OTC) but cleared through CME Clearing Europe (CMECE) will not be reported to CME ETR RRM by CMECE, since CMECE is not an OMP and is not required to offer a data reporting agreement How can I keep up-to-date with CME ETR RRM s service offering? Further details on the CME ETR RRM service (including Technical Specifications, FAQs etc.) will be available on the CME ETR RRM website: The CME ETR Business Team is also available to provide further details of the service, including pricing structures for Market Participants, OMPs and Third Parties. Contact the Business Team at: Repository@cmegroup.com GUIDANCE FROM ACER The latest guidance from ACER can be found at the ACER REMIT portal: What are the fees for the CME ETR RRM service? Our fee schedule for the CME ETR RRM service is available on our website at [insert link once loaded to website] European Trade Repository Registered Reporting Mechanism FAQ 14

15 3. ONBOARDING AND LEGAL DOCUMENTATION 3.1 What are CME ETR RRM business hours? CME ETR RRM has a London based support team operating during the primary business hours of (UK time). Extended support is provided through CME US offices, resulting in around-the-clock support coverage for our customers. Once clients have started to onboard with CME ETR RRM they will receive contact details of the client service team including phone numbers and direct s as well as the access through repositorysupport@cmegroup.com. 3.2 How long does your service retain transaction data? The data will be retained by CME ETR RRM for 12 months, in line with its requirements as an RRM. REMIT data will be retained by ACER in line with the REMIT requirements. 3.3 Do you have a dedicated client onboarding team? Yes, as part of CME GRS, CME ETR benefits from a dedicated client service team with a multi-jurisdiction coverage model. CME ETR RRM s London-based client service team will be responsible for your onboarding. During the initial meeting after selecting CME ETR RRM, you will be introduced to your dedicated onboarding manager who will be your main point of contact on a day to day basis. Once onboarded, the team will continue to provide support to you. If enquiries are submitted outside of standard European work hours, these will be handled by CME GRS customer teams in the US. 3.4 What are the steps required for onboarding? 1. Legal agreements Market participants using CME ETR RRM directly in order to meet their own reporting obligations will be required to execute the CME ETR REMIT Reporting User Agreement. Where an OMP wishes to report REMIT data on behalf of its customers, and where the OMP itself will be responsible for payment of fees, the OMP will need to execute the CME ETR REMIT Reporting User Agreement. Service Providers (who provide delegated reporting or other data reconciliation services) to underlying Market Participants and who wish to report REMIT data on behalf of their customers, are required to execute the CME ETR Service Provider. OMP s reporting data on behalf of their underlying customers where the underlying customer will in each case be responsible for payment of fees, are required to execute the CME ETR Service Provider Agreement. The underlying customers of such an OMP or Service Provider are also required to sign the CME ETR REMIT Reporting User Agreement for the purposes of access to data and must establish a Master Account for billing purposes. Further information on the relevant legal documentation and billing and access structures is available on the CME ETR website at [link to be insert once uploaded to the site]. These documents can be completed online together with any applicable schedules to the relevant documents and can be submitted via the online portal (via the send button). 2. An acknowledgement will be sent once submitted Your application will be sent to our compliance team and the onboarding team. You will receive an auto response to acknowledge receipt of your request. 3. CME ETR REMIT Service undertakes KYC and provides access to testing and production (live) environment. Following the short registration process, an will be sent to confirm that the application has been processed and username and passwords have been created for testing and production. For security reasons, the confirmation requests that the recipient phones to receive the username and password for the secure user interface. API users will be contacted by the Repository Support Team. 4. Testing (if applicable) Clients will be provided with the ACER XML specifications (copies of which are currently available on CME ETR REMIT Services website). The CME ETR REMIT client service team will be available to assist with the population of the trade files and during the testing process. They will be able to assist to ascertain why files may be breaking and also in the customisation of reports and navigation around the testing environment. The test environment will be made available to users during Q3 (third quarter) 2015 (exact dates to be confirmed and subject to sign-off by ACER of CME ETR RRM s own testing with ACER s ARIS system). European Trade Repository Registered Reporting Mechanism FAQ 15

16 5. Submit and access transactions Once clients have received their access details (tested where applicable) they may start to submit the REMIT transactions directly to CME ETR REMIT Service. Clients will also be able to access the portal to schedule/run reports which can be downloaded for reconciliation or audit purposes. 6. Invoicing Clients will be billed the annual membership in the month following the first submission to CME ETR RRM. 3.5 Are there any pre-requisites for onboarding? In addition to registration and completion of legal documentation, as required by ACER, you will need to notify CME ETR of your ID code. As per Annex 1, Table 1 of the TRUM an ID code for the Market Participant or counterparty will need to be reported; this can be the ACER registration code, Legal Entity Identifier (LEI), Bank Identifier Code (BIC), Energy Identification Code (EIC) or Global Location Number (GLN/GS1). Registration of Market Participants with the relevant national regulatory authority will result in an ACER registration code. However, if an OMP is reporting on behalf of the Market Participant, the ACER registration code may not be known. If the ACER registration code is not known one of the other codes may be used. ACER has stated that use of the ACER registration code is preferable, but all the other codes may be used. If a Market Participant is already using the LEI for EMIR reporting, that Market Participant may use the LEI code also for REMIT reporting. CME ETR RRM requires that firms provide the ACER code in order to facilitate linking the submitted data to RRM user ids. 3.6 What information will CME ETR RRM request from us? You will be asked to provide: 1 ACER registration code, LEI, BIC, EIC or GLN/GS1. 2 Where reporting from CME Europe direct to CME ETR RRM is requested, details of the transaction types which should be reported by CME Europe (order, trades or both). 3 Certain representations and warranties when signing the CME ETR REMIT Reporting User Agreement and upon submission of any derivative data to CME ETR under the terms of the CME ETR REMIT Reporting User Agreement. Full details of requirements are contained in the CME ETR Reporting User Agreement. 3.7 How long does onboarding usually take? In general, regardless of the number of entities submitted, the onboarding turnaround time from submission to set up of User Interface access is hours (typically under 24 hours). This is contingent upon KYC requirements. Adding additional reportable ACER ID codes or LEIs to a user who has already onboarded with CME ETR RRM is a straightforward process which will be turned around in 24 hours. 3.8 Are there any deadlines or cut-off dates? Onboarding can be conducted at any time once the legal documents are signed and returned. While there is no deadline or cut-off date, we would encourage you to complete onboarding as soon as possible. We encourage you to sign up for our test environment and to download and review the relevant legal documentation required for membership in advance of registration being granted in order to expedite the registration process. 3.9 What legal documentation is required to connect to CME ETR RRM? CME ETR RRM offers services to Market Participants who wish to report directly to CME ETR RRM, but also to providers of delegated REMIT reporting services and OMPs. As a result, depending on the type of customer that wishes to connect to CME ETR RRM, there may be different requirements for connectivity in terms of legal and operational onboarding. A summary of the relevant legal documentation that may be required depending on the circumstances of the relevant customer is set out below. European Trade Repository Registered Reporting Mechanism FAQ 16