Liquidity in the NBP forward market

Liquidity in the National Balancing Point (NBP) forward market during 2010-14 is examined using liquidity measures adopted from the financial literature. Since the sample period includes the date when the EU Regulation on Market Integrity and Transparency (REMIT) became in force, the question of whether changes in these measures reflect REMIT is also investigated. There is evidence of increased market transparency and competition, but no significant differences in the level of liquidity in the NBP one-month-ahead market appear to have followed the introduction of REMIT.