GFMA Submits Comments to Ofgem on the Consultation Calling for Evidence Relating to Pricing Benchmarks for Gas and Electric Markets
The Commodities Working Group of GFMA provides comments in response to the consultation in respect of the Office of Gas and Electricity Markets’ (Ofgem) call for evidence as it relates to pricing benchmarks for gas and electricity markets.
GFMA and its members believe that the integrity of benchmarks is important for market functioning and ensuring confidence in the price setting mechanisms. In November 2012, GFMA published its Principles for Financial Benchmarks to provide support and input into the regulatory dialogue on benchmarks. GFMA advocates the need for a clear and transparent regulatory framework, including consistent regulatory treatment with those undertaking similar price reporting or price formation activities.
GFMA’s response encourages Ofgem and the Financial Conduct Authority to oversee the adoption by market participants of the The International Organization of Securities Commissions (IOSCO) Principles for Oil Price Reporting Agencies (PRAs) through their formal regulatory process. This is to ensure a consistent standard across participants and maintain confidence in the marketplace.