Is There Insider Trading on the Nordic Intra-Day Electricity Market?

In this research paper, Ewa Lazarczyk conducts an empirical investigation of market participants’ reactions to news about sudden production and transmission failures on the electricity grid - so-called urgent market messages (UMMs). Market prices in the intra-day market respond to UMMs. However, there is also a significant effect on prices immediately prior to UMM announcement, indicating that private information exists and is being used for trading on the intra-day market.