Functional Architecture of European Electricity Trading Markets: Requirements for AI Supported Trading Systems under Regulatory Constraints

Battle Count: 0

Highly relevant for quantitative traders operating in European energy markets. It provides a rigorous framework for integrating regulatory constraints (REMIT, MiFID II) directly into the trading algorithm's decision loop, moving compliance from post-trade monitoring to pre-trade construction. It addresses the specific complexities of market coupling and cross-zonal constraints.

High complexity due to the need to integrate diverse regulatory rules, real-time market data from multiple NEMOs, physical grid constraints, and battery state-of-charge dynamics into a single constrained optimization framework. Requires significant engineering effort to encode venue-specific permissions and timing gates.

The paper provides a theoretical framework and formal equations but lacks specific code implementations or public datasets for immediate reproduction. Data and code are available only upon reasonable request from the corresponding author.