Last week saw the publication of this article in Farmer’s Weekly, which warns of the issues which may hit those who trade their products on a forward basis.
The concern is around the upcoming reduction in exemptions from MiFID, which are being introduced in MiFID II. The reduction will cause many more companies to be caught by the MiFID rules. In addition, the discussions on the applicability of Sections C6, 7 and 10 of MiFID may bring many more physical trades into financial regulation.
This is something that many are keen to avoid. Although it will be hard to traders to escape this net, those who use financial instruments as part of farming would appear to have a stronger argument.