ACER publishes today a guidance note to further clarify the application of REMIT (EU Regulation on Wholesale Market Integrity and Transparency) in the context of the trading behaviours associated with layering and spoofing. The Guidance Note describes a general framework which promotes a consistent approach to the National Regulatory Authorities’ (NRAs) assessment of these behaviours.

Layering and spoofing refers to the issuing by a market participant of one large or multiple non-genuine orders to trade on one side of the order book, in order to enter into one or multiple transactions on the other side of the order book. This trading behaviour is likely to send false or misleading signals to other market participants regarding the market outcome of a wholesale gas or electricity product.

This is the third guidance note published by ACER in the area of market abuse. The previous guidance notes covered the behaviours of transmission capacity hoarding and wash trades.

Additional information can be found here.

The guidance note on layering and spoofing is available here.