REMIT – Market manipulation decisions in Spain and Italy involving coordination of matching orders and wash trades; numerous decisions announced in Romania and Bulgaria

Abstract

John Ratliff and his colleagues summarize and comment on recent detailed Spanish and Italian Energy Regulator decisions on market manipulation through giving false or misleading signals (coordination on matched orders, including iceberg bids, and wash trades). The cases include explanations of such practices, the related evidence relied on by the authorities to show the infringements of Article 5 of REMIT, and the defence arguments raised, including ne bis in idem. He also summarizes (with the assistance of Monica Iancu and her colleagues in Bondoc & Asociatii) a press release from the Romanian Energy Regulator, noting the many decisions it had taken between 2019 and 2022, mainly on wash trades, with some on layering and pre-arranged transactions. Some 20 market participants have been sanctioned for infringements on the wholesale electricity market; and four market participants have been sanctioned for infringements on the wholesale natural gas market. Finally, he notes two recent press releases from the Bulgarian Energy Regulator concerning market manipulation cases, one including layering and spoofing, in which seven companies were sanctioned.