Principles of Good Conduct for Energy Trading - The "10 Pillars"
Companies engaged in trading in energy markets
- Respect and promote free and fair competition as the basis for trading
sustainable traded energy markets.
- Not engage in any activities which would amount to market abuse, market
manipulation or fraud, nor relay information known or strongly suspected to be
false or misleading.
- Deal with each other in accordance with established market practices and the
standards expected of professional market counterparties.
- Deal with customers fairly and with integrity and manage any conflicts of
interest that may arise appropriately.
- Organise their energy trading business effectively, respecting appropriate
segregation of staff duties, and exercise diligent control over trading
- Establish effective risk management policies and control procedures
governing the key risks managed by their energy trading functions.
- Establish compliance policies setting out the company's procedures for
fulfilling all legal and regulatory obligations and any related corporate
governance rules relating to their energy trading functions.
- Ensure that their traders are suitably qualified and properly supervised to
carry out their duties, including where appropriate to have taken relevant
- Prohibit their employees from giving or receiving bribes and from indulging
in other corrupt behaviour in all circumstances; and establish policies
governing gifts and hospitality, highlighting acceptable and unacceptable
- Maintain accounts related to trading transactions and risk books in
accordance with relevant accounting standards, and respecting normal audit