1. This Regulation establishes rules prohibiting abusive practices affecting wholesale energy markets which are coherent with the rules applicable in financial markets and with the proper functioning of those wholesale energy markets whilst taking into account their specific characteristics. It provides for the monitoring of wholesale energy markets by the Agency for the Cooperation of Energy Regulators ('the Agency') in close collaboration with national regulatory authorities and taking into account the interactions between the Emissions Trading Scheme and wholesale energy markets.

2.This Regulation applies to trading in wholesale energy products. It is without prejudice to the application of Regulations (EU) No 648/2012, (EU) No 596/2014  and (EU) No 600/2014 of the European Parliament and of the Council and of Directive 2014/65/EU of the European Parliament and of the Council as regards activities involving financial instruments as defined in Article 4(1), point (15), of Directive 2014/65/EU, as well as to the application of Union competition law to the practices covered by this Regulation.