Market Monitoring (MM) is an essential part of every power exchange, its main purpose is to implement and maintain apropriate market conditions on the exchange itself. Fundamental goals of the MM department on a power exchange is to establish an appropriate trust in the market, motivate fair competition, enhance the efficiency of the market and its integrity, which leads to an increase in the liquidity of the market. All of these market conditions contribute to an overall higher social welfare.
All of these before mentioned market conditions and the purpose of the MM department, is in line and partialy a consequence of the REGULATION (EU) No 1227/2011 OF THE EUROPEAN PARLIAMENT AND THE COUNCIL, which refers on the wholesale energy market integrity and transparency (LINK) (»Regulation on the energy Market Integrity and Transparency«, abbreviation REMIT). Also the functioning of the power exchange and its MM department partially refers on the COMMISSION REGULATION (EU) 2015/1222, which defines establishing a guideline on capacity allocation and congestion management (LINK), abbreviation CACM.