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Published: May 23, 2025
Reporting now includes LNG contracts and storage facilities.
Detailed reporting for algorithmic trading activities.
Real-time reporting of suspicious transactions and orders.
More granular data for cross-border electricity and gas trades.
REMIT II refers to the Regulation on Wholesale Energy Market Integrity and Transparency, specifically an updated version of REMIT that came into effect in 2024. It is a European Union (EU) regulation crucial for clients because it strengthens oversight, enhances market transparency, and increases protection against market manipulation in the EU’s energy sector. It also introduces stricter compliance requirements which will enhance trust and stability, benefiting all stakeholders in the long run. The key changes and subsequent impacts have been highlighted below:
More contracts, including LNG, storage, and algorithmic trading, now require real-time reporting, increasing administrative burdens.
Firms must invest in monitoring systems, staff training, and legal support. Non-EU entities must appoint an EU representative, adding costs.
Physical contracts, financial contracts, and storage.
Regulators have enhanced enforcement powers, with fines up to 15% of turnover or €5 million for non-compliance, increasing regulatory risks.
Physical contracts, storage, and transport.
Firms using algorithmic trading must notify regulators, maintain detailed logs, and comply with anti-disruption measures, requiring system upgrades.
Non-EU Entity Requirements
Non-EU participants must establish EU-based representation, adding administrative and financial burdens.
Carbon emission trading.
Urgent market messages and suspicious activities must be reported via ACER-approved platforms, increasing operational complexity.
Generation, transmission, and reliability services.
LNG price assessments require real-time reporting. Stricter market manipulation rules demand closer monitoring of trading strategies.
Interconnection contracts and regional markets.
Larger firms benefit from harmonised EU rules, while smaller players may struggle to meet compliance demands, creating potential market imbalances.
RECs, PPAs, and related contracts.
Overall Impact: Clients/Firms must enhance reporting, invest in compliance, and adjust trading strategies to meet stricter regulations, increasing costs and complexity.
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Compliance with REMIT II showcases a commitment to transparency, strengthening trust with regulators and market participants.
Enhanced reporting provides valuable market data, enabling clients to refine trading strategies and gain a competitive edge.
Investing in compliance systems streamlines processes, enhances efficiency, and strengthens overall risk management.
Physical and financial contracts, including cross-border trades.
Physical contracts, financial contracts, and storage.
Physical contracts, financial contracts, and storage.
Physical contracts, storage, and transport.
Physical contracts, storage, and transport.
Certain energy-related contracts.
Certain energy-related contracts.
Certain energy-related contracts.
Carbon emission trading.
Generation, transmission, and reliability services.
Generation, transmission, and reliability services.
Interconnection contracts and regional markets.
Interconnection contracts and regional markets.
RECs, PPAs, and related contracts.
RECs, PPAs, and related contracts.
REMIT II expands reportable fields to improve transparency and oversight in wholesale energy markets. Clients must ensure their systems collect, process, and submit these fields accurately and timely. Fields vary by transaction type (e.g., physical trades, financial derivatives, LNG contracts) and include:
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Ready to navigate Remit II reporting with confidence? Our expert team provides the guidance and tools you need to generate compliant, insightful disclosures that meet the evolving regulatory landscape.
Reach out to First Derivative today for tailored support with Remit II and beyond!
Tina Braide
Business Analyst
Derivative Regulatory Reporting
First Derivative LinkedIn profile
Provides capital markets, programme management expertise to our industry-leading banking clients: MiFID II, SFTR, FATCA, SEC SBSD and CFTC.
Currently managing the SFTR Remediation at US Tier 1 IB.
Brings 20+ years’ experience and knowledge in Financial Services focused on regulatory change in capital markets. Trade and Transaction Reporting SME in EMIR and MiFID.
Experienced Business Analyst with 10+ years in financial services, specialising in regulatory reporting (EMIR, CFTC, HKMA, MAS), UAT, and data quality analysis. Proven success in driving testing, issue resolution, and compliance across global banking projects.
