Engie Global Markets fined GBP 2.1 million for gas spoofing (Ofgem)
Ofgem found that between 1 June and 31 August 2016 a trader working in the name and on behalf of Engie Global Markets engaged in spoofing in the NBP month-ahead natural gas contract, in breach of Article 5 of REMIT. The penalty was GBP 2,128,236 following early settlement.
On this page
The decision
- Authority
- Ofgem (OFGEM), Great Britain
- Published
- 5 September 2019
- Participants
- Engie Global Markets
- Commodity
- Gas
- Market
- GB wholesale gas market, NBP month-ahead contract (OTC)
- Conduct period
- 1 June to 31 August 2016
- REMIT
- Article 5 (Market manipulation)
- Type of conduct
- Layering and spoofing
- Penalty
- GBP 2,128,236 following early settlement; Ofgem describes a 30% discount
- Status
- Final (settled)
What Ofgem found
Ofgem's published finding of 5 September 2019 states that the Authority is satisfied that Engie Global Markets (EGM), a company registered in France, breached Article 5 of REMIT. Between 1 June 2016 and 31 August 2016 a trader working in the name and on behalf of EGM contravened Article 5 on a number of occasions, and the Authority held EGM liable for the breach.
The finding identifies the product as the month-ahead contract for delivery of natural gas at the National Balancing Point, traded over the counter. It says transactions or orders were issued that gave, or were likely to give, false or misleading signals as to the supply of, demand for or price of wholesale energy products, or that secured or were likely to secure their price at an artificial level. Ofgem's press release describes the conduct as spoofing: placing bids or offers with no intention of executing them in order to buy or sell at a higher or lower price and increase trading profits. The investigation found no evidence of more widespread market manipulation by EGM.
How it came to light
According to Ofgem's press release, a market participant alerted Ofgem to suspicious activity on the wholesale gas market for Great Britain in November 2016, and Ofgem launched an investigation.
What the decision turned on
The press release says Ofgem considered that EGM failed to take appropriate measures to prevent or detect the breach: EGM had some measures in place, but they were inadequate at the time to detect and prevent the breaches. EGM cooperated fully, and since August 2016 had taken measures to help prevent a recurrence, for example by increasing surveillance of trading activity undertaken on its behalf by its traders. The finding itself records the Authority's notice of EGM's cooperation and of the measures put in place after the breach, as part of weighing aggravating and mitigating factors.
The penalty
Ofgem imposed a level 3 sanction and recorded cooperation with the investigation and measures taken after the breach among the relevant factors. Its published finding sets the final penalty at GBP 2,128,236 and describes a 30% early settlement discount after EGM admitted the breach. It does not itemise the aggravating and mitigating adjustments.
For a surveillance function
The press release ties the finding to the adequacy of the firm's own controls: Ofgem treated measures that existed but could not detect or prevent the conduct as inadequate. A firm's surveillance of its traders' order activity is therefore assessed on whether it works, not only on whether a policy exists.
Sources
- Ofgem, Finding that Engie Global Markets has breached Article 5 of REMIT, 5 September 2019 (Decision)
- Ofgem, Ofgem fines Engie Global Markets (EGM) GBP 2.1 million, 5 September 2019 (Press release)
- ACER, overview of REMIT sanction decisions (ACER register)
Sources read on 27 October 2026. This page restates what the authority published and adds no finding of its own. A decision under appeal is not final, and its status may have changed since: check the source before relying on it.