Today’s launch of futures trading on the Austrian CEGH Gas Exchange, in the view of the supervisory authorities for the financial and energy market, FMA and E-Control, marks an important step towards greater transparency in the gas wholesale sector. A key element of a liquid trading place is ensuring that market participants have confidence in trading, believing it to be correct and fair. Consequently, the energy regulator E-Control and the Financial Market Authority (FMA) are working together very closely in this area.
“With regard to gas trading in particular, which has traditionally been dominated by long-term contracts that have often lacked transparency, we as the energy regulator have a keen interest in the creation of liquid trading places. The current excess supply of gas throughout Europe makes it easier for liquid trading to be created,” explains Walter Boltz, Managing Director of E-Control GmbH. “Whilst derivative trading on a commodities future exchange hedges risks for the real economy, it also involves the transfer of risk from the real economy to the financial sector, and vice-versa. With this in mind, this is an area in which the energy regulator and the Financial Market Authority must work together,” stresses FMA Executive Director Kurt Pribil.
EU working on a comprehensive supervisory system for trading
At EU level, work is currently in progress to develop a new supervisory system for energy trading, which will involve close institutional cooperation between the financial supervisory authorities and energy regulators. Financial market stability and efficient price formation on the markets are the essential aims of supervision. This requires that all transactions be reported to the authorities in order to prevent market abuse and insider dealing. The law in Austria already provides for close cooperation between the two authorities.
The common goal of cooperation is to create an efficient supervisory system that promotes trading, builds up confidence, and results in as little administrative work as possible for the participants and trading places that are being supervised.
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-5106
+43/(0676)/882 49 516
fma.gv.at
Bettina Ometzberger (E-Control)
+43/(0)1/24 7 24 202
www.e-control.at
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