On 8 September 2015, days after the FCA published the findings of its review, the UK energy regulator Ofgem published an open letter highlighting market manipulation and insider dealing concerns arising from its monitoring of compliance with the EU Regulation on Wholesale Energy Market Integrity and Transparency (REMIT). Ofgem identified various market behaviours it had witnessed as likely to be or potentially manipulative, including:

  • Layering.
  • Marking the close.
  • Pre-arranged trading.
  • Submitting small bids ahead of large offers (or vice versa).

Ofgem also raised concerns as to the confidentiality of inside information, especially information regarding the availability of assets, pending required disclosure, the timeliness of such disclosures, and the methodologies used to identify inside information. The letter concludes with a reminder of Ofgem’s powers to deal with breaches of REMIT – which include criminal prosecution powers since April 2015.