Quarterly multi-round ascending clock auction sponsored by the Country A NRA and organized by XXX Exchange. This auction brings together one instrument seller against multiple buyers. Although this trading system (one-to-many) does not seem to fit the Agency’s understanding of an organised market place, the guidance from the NRA is that the results of these auctions should be reported anyway, presumably because the subject of the auction are standard contracts also admitted to continuous trading in XXX Exchange.
These contracts are futures and should be reported as per article (3)(1)(a)(viii) of Commission Implementing Regulation (EU) No 1348/2014, using Table 1. The structure of this table supports the reporting of a list of contracts, transactions and orders, but does not natively support some properties of these auctions (initial/closing price per round, demand/supply surplus per round, exit prices defined by agents, etc.).
How should these types of auctions be reported in REMIT?
The reporting model for standard contracts should accept the characteristics of clock auctions. In particular, we refer:
- the possibility of several rounds;
- the definition of a round opening price and a round closing price for each round;
- the definition of intermediate price points defined by bidders, between the round opening price and the round closing price.
From the Agency’s point of view, the TRUM, available on the REMIT Portal, is already addressing this question on page 15. If the Auction is not an Organised Market Place (which has to be assessed by the person who runs the Auction), then the orders should not be reported. However, any trade concluded in such a platform has to be reported in Phase 2 (7 April 2016) as any other bilateral contract.