Energy Community Energy Derivatives Coordination Group

Evolution of the energy markets has resulted in new trading venues and financial instruments. Market and counterparty risk is at best managed with energy derivatives contracts. In most cases, such contracts are traded and/or cleared centrally. As the financial framework evolves, cooperation and coordination between energy and financial regulatory authorities is essential.

In its conclusions, the 56th PHLG took note of the initiative by the Secretariat to establish the Energy Derivatives Coordination Group (EDCG). Established as a platform to coordinate oversight and supervision of the energy commodity derivatives, the EDCG aims to enhance cooperation between energy and financial national regulatory authorities:

  • in the areas where input and coordination is required to ensure market integrity, as well as,
  • to facilitate the development of a regulatory framework related to energy commodity derivatives and centralized clearing.
  • Structure and format

    Structure and format

    EDCG's plenary meeting is the main body coordinating its activities. Task Forces, or ad-hoc working groups, dealing with specific areas may be established by the EDCG. Chaired by Energy Community Secretariat, the EDCG functions in an open format with free access to events and activities by its members.

    Whilst the EDCG will meet at least once a year during spring or autumn, it may decide to have more frequent meetings if needed.

    All the EDCG meeting documents will be uploaded into the Events-section of the Energy Community website. Whilst   the access to EDCG meeting documents  is restricted to its members only, the EDCG may occasionally decide to make a document public.  

  • Composition


    The EDCG is comosed of representatives from energy and financial regulators of the Contracting Parties. Observers may be invited to participate in the activities of the EDCG.

    Energy Community Secretariat will facilitate activities of the EDCG. Experts and officials from Energy Community Secretariat and European Commission will be members in the EDCG.

    Task Forces or ad-hoc working groups dealing with specific areas may be established by ECDG. Conveners of such task forces and working groups are proposed by members of the EDCG or the Energy Community Secretariat. 

  • Tasks


    ECDG is a platform for discussion and sharing best practises of the matters pertaining to energy commodity derivatives and the coordination between energy and financial regulators in the Contracting Parties when dealing with overlapping areas.

    In particular, the tasks of the ECDG are:

    • Assessing the areas where E-Regs and F-Regs powers overlap. This might be the case of the energy derivative instruments and venues where such instruments are traded;
    • Facilitating the development of regulatory framework, supporting trading in energy derivatives and clearing through central clearing;
    • Ensuring cooperation and coordination in relation to oversight, monitoring and surveillance of the activities that fall under the energy and financial framework, in particular in relation to integrity framework;
    • Exchange of experience in different Contracting Parties and EU Member States in relation to cooperation between E-Regs and F-Regs, and other competent authorities;
    • Issuing regulatory guidance to industry representatives and others in relation to overlapping areas;  
    • As needed, cooperate and coordinate activities with other groups and task forces established under the Energy Community Treaty;
    • As requested, report to the Energy Community institutions.