Commission Regulation (EU) No 1031/2010Show full title

Article 25 U.K. The auction monitor’s functions

1. The auction monitor shall monitor each auction and report on the proper implementation of the auctions conducted in the preceding month to the Commission on behalf of the Member States and to the Member States concerned, within the deadline provided for in the fourth subparagraph of Article 10(4) of Directive 2003/87/EC, pursuant to that subparagraph in particular with respect to:

(a) fair and open access;

(b) transparency;

(c) price formation;

(d) technical and operational aspects.

2. The auction monitor shall provide to the Member States and the Commission an annual consolidated report which shall comprise:

(a) the matters referred to in paragraph 1 both in relation to each individual auction and in aggregate for each auction platform;

(b) any failure to comply with the contract appointing an auction platform;

(c) any evidence of anti-competitive behaviour or market abuse;

(d) the impact of the auctions on the market position of the auction platforms on the secondary market, if any;

(e) the relationship between the auction processes covered in the consolidated report and between them and the functioning of the secondary market, pursuant to Article 10(5) of Directive 2003/87/EC;

(f) information about the number, nature and status of any complaints made pursuant to Article 59(4) as well as any other complaints made to the national competent authorities supervising credit institutions and investment firms;

(g) information about any follow-up given to any reports of the auction monitor made under paragraphs 3, 4 and 5;

(h) any recommendations deemed appropriate to improve any of the auction processes or for any review of the following:

(i)

this Regulation including the review referred to in Article 33;

(ii)

the Commission regulation adopted pursuant to Article 19(3) of Directive 2003/87/EC;

(iii)

Directive 2003/87/EC including the review of the functioning of the carbon market provided for in Articles 10(5) and 12(1a) of that Directive.

3. The auction monitor may, upon request by the Commission and one or more Member State(s), or as required in paragraph 5, report from time to time on any specific issue related to any of the auction processes, whenever it is necessary to raise the issue in question prior to the submission of the reports covered in paragraphs 1 or 2. Otherwise the auction monitor may report thereon in the reports provided for in paragraphs 1 or 2.

4. A Member State not participating in the joint action provided for in Article 26 of this Regulation but opting to appoint its own auction platform pursuant to Article 30(1) and (2) of this Regulation may request the auction monitor to provide the Member States, the Commission and the auction platform concerned with a technical report on the ability of the auction platform it proposes or intends to propose, to carry out the auction process in accordance with the requirements of this Regulation and in conformity with the objectives set out in Article 10(4) of Directive 2003/87/EC.

In such reports, the auction monitor shall clearly state where the auction process meets the requirements of the first subparagraph and where it does not. It shall make precise recommendations for further development or improvement to the auction process wherever appropriate, proposing a specific timeline for their implementation.

5. In the event of any breach of this Regulation or non-conformity with the objectives of Article 10(4) of Directive 2003/87/EC of the auction process carried out by an auction platform, or upon request by the Commission in case it suspects such a breach, the auction monitor shall report forthwith to the Member States, the Commission and the auction platform concerned.

The report shall clearly state the nature of the breach or non-conformity. It shall make precise recommendations to remedy the situation, proposing a specific timeline for their implementation. Where appropriate, it may recommend the suspension of the auction platform concerned. The auction monitor shall keep its report pursuant to this paragraph under constant review and provide quarterly up-dates thereon to the Member States, the Commission and the auction platform concerned.

6. Any opinions provided pursuant to Article 7(7) or 8(3) of this Regulation by the auction monitor shall form part of its functions pursuant to this Article.

7. The reports and opinions provided for pursuant to this Article shall be drawn up in a comprehensible, standardised easily accessible format to be determined as set out in the contract appointing the auction monitor.