Is it possible to perform trading in Nord Pool’s Physical Markets when having insider information?
The rules on insider trading as written in the Rulebook for Nord Pool’s Physical Markets appendix 6 – Market Conduct Rules – are applicable for both Elspot and Elbas trading. According to section 3.1 in the Market Conduct Rules Participants and Clearing Customers may not place new Bids nor change or remove existing Bids in the Physical Markets while having insider information. Furthermore it is not permissible to actively enter into transactions. The prohibition to actively enter into transactions is mainly applicable for the Elbas Market and implies that it is not permissible to “hit” on other parties’ existing Bids. As it is not permissible to remove your own Bids, it is however OK to be the passive party in a transaction while having insider information. In accordance with section 3.2 in the Market Conduct Rules, Participants and Clearing Customers may however perform Bidding on the Elspot Market pursuant to the Elspot Regulations when not taking into consideration the events mentio