REMIT legal architecture generally use the term "wholesale energy product" when referring to contracts for the supply and transportation of gas and electricity within the European Union, however the definition of the "contract" is relevant for the reporting scheme.
Within the ACER's Trade Reporting User Manual (TRUM) the term "contract" refers to a specific tradable instrument that allows a market participant to trade the product; i.e. the actual traded commodity, on a specific market place.
Orders and trades can only occur against a contract. There can be multiple contracts against a single product.
The contract has the following characteristics:
- Contract Type = Day-ahead / Forward
- Market Identification = Legal Entity Identification (LEI) or Market Identification Code (MIC)
- Market Contract Name = Electricity French Base load.
This could be represented as: [Product][Contract Type][MIC][Contract Name].
Additional information relating to a contract, which varies between venues, includes:
- Contract Size = 25 MW
- Trading Times = 12pm (auction) or 09:00 to 17:00 (continuous market)
- Traded Currency = EUR
Contracts traded at different organised market places are different from each other as different terms and conditions apply, despite it is related to the same energy commodity. For each individual contract there is a specific order book.
Market participants can either buy or sell the contract traded at that organised market place.
Contract versus product
The product is the subject of the contract and this could also be traded in another organised market place. Whilst the contract is specific to one organised market place, the product con be traded at other organised market place or bilaterally.
Contract versus transaction
The term "contract" has to be differentiated for REMIT reporting purposes from "transaction". The said distinction is reflected with the standard and non-standard reporting forms (as laid down in the Tables 1 and 2 in the Annex to the REMIT Implementing Regulation No 1348/2014), where standard form (Table 1) requires to report data on theboth: the "contract" (Fields No 21-29) and the "transaction" (Fields No 30-43), while the non-standard form (Table 2) requires to report data on the "contract" (Fields No 11-23) only (with the sole exception relating to the Field No 1, where "transaction" is mentioned).
Data fields of the REMIT reporting format related to the contract (standard supply contracts)
Pursuant to the REMIT Trade Reporting User Manual (TRUM) data fields related to contract details are:
21. Contract ID
22. Contract name
23. Contract type
24. Energy commodity
25. Fixing index or reference price
26. Settlement method
27. Organised market place ID/OTC
28. Contract trading hours
29. Last trading date and time
REMIT reporting field 21 identifies the unique contract ID provided by the organised market place at which the contract is traded. The contract ID is venue-specific. The contract ID is needed to link all the orders to a specific contract.
Market participants reporting bilateral contracts traded off-organised market place are not expected to submit a contract ID.
Pursuant to the TRUM this field identifies the name of the contract as identified by the organised market place hosting the trading of the contract. The contract name may or may not be a venue-specific name.
The contract name should be unique for a particular organised market place, but the same name can also be used by other organised market places. The contract name should be the same as used by the organised market place to advertise the contract in their system to their clients.
If market participants delegate third parties to report their transactions executed at organised market places, then they should use the same contract name if made available to them.
Sometimes the contract name and the contract ID may be the same. In this case, both fields should be populated with the same value. Market participants reporting bilateral contracts traded off-organised market place are expected to report the value of "BILCONTRACT", "BACKLOADING" or "EXECUTION" according to the trading scenarios available in ANNEX II.
Accepted values for this filed are:
FW=Forward style contract
FU=Future style contract
OP=Option style contract
OP_FW=Option on a forward
OP_FU=Option on a future
OP_SW=Option on a swap
For bilateral trades that take place on brokers' platforms or bilateral trades off-organised market places, one of the other values should be reported.
Pursuant to the TRUM FW (for forward style contract) refers to the forward style which also include spot transactions.
Market participants should not understand forward style as a sort of derivative contract, but as the style of the contract itself.
For contracts such as options on forwards, futures or swaps, as they settle into the underlying forward, future or swap, this should be considered for physical delivery of the underlying contract and the value of "P" should be reported.
|Contract trading hours/Last trading date and time||
All contract hours must be reported using UTC time format.
For bilateral trades that occur off-markets, 00:00Z to 24:00Z should be indicated by default in the field "Contract trading hours".
As regards bilateral trades which take place outside organised market places, the field "Last trading date and time" should not be populated.