Regulation of Nord Pool Spot AS

Nord Pool Spot holds a license (“Markedsplasskonsesjon”) under the Energy Act (2003) of Norway. The license is granted by the Norwegian Water Resources and Energy Directorate (NVE) to operate an organized marketplace for trade in physically delivered power contracts. Nord Pool Spot is under supervision by NVE.

The license requires that a market surveillance function is established, and Nord Pool Spot has in cooperation with Nord Pool ASA established a joint market surveillance function for both companies.

The rulebook for Nord Pool Spot regulates the obligations and right of the market participants in trading and settlement, and constitutes the rules that the spot market participants have to comply to.

Chapter 10 in the Rulebook for trading at Nord Pool Spot regulates the market conduct in the physical market in relations to disclosure of price relevant information, misuse of insider information and market manipulation.

The market conduct rules in the rulebooks governs reporting of non-exchange trades, disclosure of price relevant information, misuse of insider information and market manipulation.

Regulation of Nord Pool ASA

Nord Pool ASA holds a license as a derivatives exchange under the Exchange Act (2000). The license is granted by Ministry of Finance and Nord Pool ASA is under supervision by the Financial Supervisory Authority of Norway, Kredittilsynet.

In addition Nord Pool Clearing holds a license as a clearing house from the Ministry of Finance.

Derived from the Exchange Act (§5.11) which requires that exchanges has established a market surveillance function, the Ministry of Finance has created an exchange regulation (“Forskrift om markedsovervåkning”) which further regulates the work of market surveillance.

The market conduct of market participants in the financial markets operated by Nord Pool ASA is regulated by the Securities Trading Act (2005).

The rulebook at Nord Pool ASA and the rulebook at Nord Pool Clearing ASA regulate the obligations and rights of the market participants in trading and clearing/settlement and together with the Norwegian law, it constitutes the rules that the market participants have to comply to.