Algorithmic trading at the centre of the European forum on energy market abuse

Source: ESMA – esma.europa.eu
Publication date: 28 November 2025
ESMA
Official link: https://www.esma.europa.eu/press-news/esma-news/algorithmic-trading-tops-agenda-financial-and-energy-regulators-forum

ESMA reports that at the Energy Trading Enforcement Forum (ETEF) held in Paris, one of the main focuses was the use of algorithmic trading for manipulative behaviour in energy markets, with the first cases already reported by national supervisors to judicial authorities for suspected market abuse. The statement highlights that the combination of high-frequency algorithms, large volumes of data and links between energy and financial markets requires strengthened cooperation between ESMA and ACER to detect price-manipulation schemes.

In practice, these schemes may involve automatic orders quickly placed and cancelled (“spoofing” or “layering”) to give a false signal of demand or supply and push prices in a certain direction before executing a few real trades for profit. An investor may be indirectly affected, for example through strong fluctuations in energy prices or funds/ETFs linked to these markets: it is important to beware of unauthorised platforms promising “safe” returns by exploiting supposed energy-arbitrage algorithms and always check in official registers (ESMA and national authorities) whether intermediaries are authorised.