II.1.1.

What is REMIT?

Answer: REMIT was published in the Official Journal of the European Union on 8 December 2011 and entered into force 20 days following its publication, i.e. on 28 December 2011. REMIT introduced, for the first time, a consistent EU-wide framework:

• defining market abuse, in the form of market manipulation, attempted market manipulation and insider trading, in wholesale energy markets;

• introducing the explicit prohibition of market manipulation, attempted market manipulation and insider trading in wholesale energy markets;

• establishing a new framework for the monitoring of wholesale energy markets to detect and deter market manipulation and insider trading; and

• providing the enforcement of the above prohibitions and the sanctioning of breaches of market abuse rules at national level.

REMIT prohibits market manipulation and trading on inside information in wholesale energy markets. The definitions of market manipulation and insider trading in REMIT are in line with those applying under Directive 2003/6/EC (Market Abuse Directive or MAD), though adapted for wholesale energy markets. The prohibitions of market manipulation and insider trading in REMIT does not apply to wholesale energy products which are financial instruments and to which Article 9 of MAD applies.

REMIT regulation is available here: https://www.acer.europa.eu/remit-documents