The European Securities and Markets Authority (ESMA) and the EU Agency for the Cooperation of Energy Regulators (ACER) have signed an updated Memorandum of Understanding (MoU) which strengthens collaboration between the two institutions. The MoU notably incorporates new cooperation areas under the market correction mechanism (MCM) Regulation and benchmarks related to the energy sector. It also details the role of the recently established ACER–ESMA Task Force.
ESMA and ACER will continue to cooperate in relation to regulation of wholesale energy markets, which encompass both energy derivatives and spot markets. The cooperation will primarily be achieved through on-going consultations, exchange of information and cross-participation in joint meetings of working groups and task forces.
Main areas covered by the MoU
- Coordinated and consistent approach to market abuse framework under the Regulation on wholesale energy market integrity and transparency and the Market Abuse Regulation to further enhance market integrity in energy and energy derivative markets;
- Technical cooperation on data and knowledge with respect to the functioning of energy and energy derivative markets; and
- LNG price assessments and benchmarks administered by ACER and other energy-related benchmarks relevant for ESMA’s or ACER’s mandates.
ESMA and ACER have a long-established cooperative relationship. The first MoU was signed in July 2013.
In October 2022, in the context of the energy crisis, ESMA and ACER enhanced their efforts to strengthen oversight of energy and energy derivative markets. They launched the idea of a joint ACER–ESMA Task Force and highlighted possible areas of cooperation. More here.
ESMA and ACER published preliminary data reports concerning the adoption of the EU Regulation establishing an MCM to protect Union citizens and the economy against excessively high prices in January 2023. See ESMA report here and ACER report here. The provisions governing the MCM started applying on 15 February 2023.
Both institutions released last week, on 1 March, their respective Effects Assessments. See ESMA report here and ACER report here.