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Europex statement on the definition of physical commodity trades as derivatives

Europex (the association of European energy exchanges) have just published this statement about whether physical commodity trades should be classified as derivatives, as defined in MiFID Annex I section C. The answer to this question defines whether trades are within the scope of MiFID and therefore also EMIR and MAR. In the statement they are arguing … Continue reading

Benchmark manipulation – how will the rules apply?

See here for an interesting article from Reed Smith about the different rule making taking place around the world regarding benchmark manipulation. In particular it suggests that while benchmarks are not explicitly mentioned in REMIT (unlike MAR), they are never the less clearly targeted. This means that one needs to be careful that no one in … Continue reading

Summary note of REMIT Implementing Act adoption meeting

The European Commission have finally published this summary note of the commitology meeting that took place on 3rd October. It does not seem to contain all of the details of the timeline, which has been reported here, but it does state that: The act is agreed to be adopted There is likely to be a … Continue reading

New EMIR Q+A published

ESMA have published an updated version to their Questions and Answers document on EMIR, which can be found here. Among the interesting items for the energy and commodities trading industry: It is reiterated that LEIs (or BICs) should be used (TR 10b) It is restated that there is no officially endorsed way to generate UPIs … Continue reading

Responses to MAR consultations published

ESMA have published the responses to the consultation held recently on the forthcoming Market Abuse Regulation (MAR). This regulation extends the original Market Abuse Directive (MAD), and generally applies to financial trading. It will also apply to emissions and to some commodity spot trades. There is an interaction with REMIT, that generally applies to energy … Continue reading

Article on possible REMIT delay

It is not official, but this article on the ICIS web site refers to a potential delay in REMIT reporting. The article states that: The Implementing Act should be published in the official journal around December and take effect 20 days later The first deadline (for on venue trades) will be nine months later (and not six … Continue reading

EMIR Level 1 validation requirements – work followed by more work

The beginning of December sees the rolling out of the ESMA “Level 1” requirements for EMIR Trade Reporting. This represents an attempt by ESMA to improve reconciliation rates at and between the TRs for trade reporting, which so far have been said to be very low. This has many causes, but in particular it has been … Continue reading

Updated MiFID II guide

Norton Rose have updated their MiFID II/MiFIR guide on its application to commodities. It can be found here.

Meanwhile, in the world of FX

According to this FT report, the confusion around the definition of an FX derivative has been extended until the implementation of MiFID II. We should therefore not feel alone in the commodities industry about such definitions..

REMIT Comitology meeting agenda posted, but no other information

DG Energy have finally publicly posted the fact that a Comitology meeting took place on the 3rd October together with the agenda, which can be found here. The outcome of the meeting has not yet been posted info a public forum and we are therefore unable to post a link to it. We will do … Continue reading