Dealing with erroneous orders
As an energy market participant, you need to cancel or reverse any incorrect trading orders, and you must publish the error. Otherwise you may be fined for market manipulation.
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Erroneous orders
You place an erroneous order if you are a energy market participant and you enter an order to trade incorrectly. For example, you enter too low a price, too high a volume, or the wrong order type.
Cancel your order
If you place an erroneous order, you need to ensure immediately that this has as few consequences as possible:
- Cancel your order as quickly as possible.
- In case that your order resulted in a transaction, try to reverse the transaction.
Make sure that you know how you cancel or reverse an order. Enquire with your trading platform, and add it to your procedures.
Publish your error
You must inform the energy market of your erroneous order:
- Inform other market participants using the notification procedure of your trading platform, if it has one.
- Publish the error as inside information. This is mandatory if your erroneous order may impact trade outside of your trading platform.
Prevent new errors
Investigate how the error could have happened, and what measures are needed to prevent new errors. With that knowledge, improve your working procedures.
Example
Your computer system generates automatic warning notifications if there is a significant deviation from a previously entered value. Thanks to that system, you discover just in time that you accidently added one extra 0 to the price.
As market participant, you are responsible for preventing and resolving errors properly. We can demand access to your working procedures if we suspect a REMIT violation.
Consequences of erroneous orders
If your erroneous order gives the energy market a false or misleading signal, it is considered market manipulation according to REMIT. It does not matter if you made the error on purpose or by mistake. We can impose high fines for this type of market manipulation.
It will be more likely that we launch an investigation into your erroneous order if you do not resolve your erroneous orders properly or if you take too few measures to prevent errors.
If you have any questions about how to deal with erroneous orders, please contact us by sending an email to %20remit [at] acm [punt] nl (remit[at]acm[dot]nl).
If Do you suspect a company of suspicious trading, please consider submitting a tip-off.