§ Lord Taylor of Warwickasked Her Majesty's Government: Whether, in order to ensure more effective regulation of gas prices, they will consider extending the remit of the Financial Services Authority to include regulatory enforcement for Spectron as well as for the International Petroleum Exchange. [HL33]
Lord Mclntosh of HaringeyBoth Spectron and the International Petroleum Exchange (IPE) are subject to regulation by the Financial Services Authority (FSA). Spectron has a number of subsidiaries active in the trading of commodity derivatives, including gas products, which are regulated as authorised firms by the FSA. The IPE is regulated by the FSA as a recognised investment exchange.
As a recognised investment exchange, the IPE operates a prescribed market under the market abuse regime which is enforced by the FSA. Behaviour in relation to contracts traded on the exchange has to comply with the prohibitions in the market abuse regime. Spectron does not operate a prescribed market under the market abuse regime. But some of the contracts, including gas contracts, on Spectron's electronic trading system can be relevant products 57WA under the market abuse regime and behaviour in relation to them has to comply with the regime's prohibitions.
The Government have no plans to change the remit of the Financial Services Authority to increase further its responsibilities in relation to Spectron.