Trading and Settlement Code Terms of Reference for the Market Audit 2021

Trading and Settlement Code Terms of Reference for the Market Audit 2021

The SEM Committee has today, 04th November 2021, published the Trading and Settlement Code Terms of Reference for the Market Audit 2021 Decision Paper.

This paper sets out the Terms of Refence (TOR) that the SEM Committee has determined for the 2021 Trading and Settlement Code Market Audit, following the publication of the Consultation Paper on the proposed TOR for the Audit (SEM-21-064), and subsequent review of the two responses received.

Based on the responses, the SEM Committee has decided the following:

  • to implement a core SEMO audit
  • to include additional limited expansion to the core SEMO audit. The limited expansion will be into the calculation, application and reporting of the Market Operator charges (Fixed and Variable) and Imperfection charges within the TSC.
  • to continue with the materiality threshold being set at 0.25% of estimated annual market value, with a threshold of 10% of the materiality level set for the reporting of Significant Issues. The definition of market value will be calculated to incorporate the Balancing Market, Capacity Market, and Imperfections.

The SEM Committee will continue engagement with SEMO in relation to the scheduling of the 2021 TSC Market Audit.