Legal Framework

The legal framework for the organisation of MIBEL and the Derivatives Market is based on the "Agreement between the Portuguese Republic and the Kingdom of Spain relative to the constitution of an Iberian Electrical Energy Market" ("MIBEL Agreement"), signed by the respective governments, on October 1st 2004. This Agreement establishes the general principles for the organisation and management of MIBEL and, in particular, the framework for the organisation of the spot market and the derivatives market.

Under the terms of the "MIBEL Agreement", despite its cross-border activity, the MIBEL Derivatives Market is a market directly subject to Portuguese law and jurisdiction, being, due to its financial nature, subject to the legislation applicable to this type of markets, predominantly:

  • Securities Code;
  • Securities Market Commission (CMVM - Comissão do Mercado de Valores Mobiliários) Regulations
  • CMVM Instructions.

Decree n.º 945/2004, of July 28th, that authorizes OMIP to manage the derivatives Market, should also be taken into consideration, specifically. Thus, the Derivatives Market is under the direct supervision and regulation of the CMVM. However, taking into account the underlying assets of the products traded on the Derivatives Market, CMVM powers are carried out in coordination with ERSE - Entidade Reguladora dos Serviços de Energia (Regulatory Entity for Energy Services), as the entity responsible for the regulation of the electricity and natural gas segments in Portugal.

Notwithstanding the powers granted to the Portuguese Authorities, under the terms of the "MIBEL Agreement", the regulation and supervision of the Derivatives Market is carried out in conjunction with the equivalent Spanish Authorities:

  • National Energy Commission (Comisión Nacional de los Mercados y la Competencia - CNMC);
  • National Securities Market Commission (Comisión Nacional del Mercado de Valores - CNMV).