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Consultation on the transposition of MiFID II – HM Treasury

HM Treasury (UK government) have opened a consultation on the transposition of MiFID II into UK law. MiFID must be transposed into law in each member state by mid 2016. The various consultation documents can be found here. Page 21 of the main document discusses position limits and reporting, including the fact that such legislation … Continue reading

Interesting article on the implementation of trade reporting systems

See here on LinkedIn for an interesting post by Harry Nota of OpenLink on why it is wise to invest in a more strategic solution to meeting various trade reporting needs, sooner rather than later. The argument is made that each time one builds a tactical solution, the chances of throwing away the work and … Continue reading

REMIT criminal sanctions to come into force in the UK

Criminal sanctions for breaches of REMIT Articles 3 and 5 (use of inside information and market manipulation) will come into force on 13th April, following the passing of the relevant legislation, which can be found here. The rules mean that the UK joins some other countries with a stricter set of penalties for breaches of … Continue reading

FCA seeks input on MiFID II via Discussion Paper

The UK’s Financial Conduct Authority yesterday issued this discussion Paper asking for input on various  aspects of MiFID II. Comments are due by 26th May. The paper does not appear to address issues specific to commodity derivatives and the loss of exemptions for many of those who trade them.

Comments by Stephen Maijoor to ECON on MiFID II

ESMA yesterday published the speech given by Stephen Maijoor, chair of ESMA to ECON(European Parliament Committee on Economic and Monetary Affairs), about MiFID II. The speech can be found here. Part of the speech looks at the issues around commodity derivatives (page 2). In particular, the issue of the narrowing of exemptions, and the potential bringing … Continue reading

ACER Recommendation on MiFID Annex I Section C6

Following many discussions, a consultation and technical advice run by ESMA on MiFID Annex I Section C, ACER have just issued a recommendation, which can be found here. As a brief background, Section C defines the trades that are defined as “financial instruments”. This is of particular interest to those who trade physical commodities, since … Continue reading

CME Webinar on REMIT

Next week on 1st April the CME will be hosting a webinar on REMIT, which will cover both the rules and the CME’s own REMIT offering. Registration can be kicked off from here. CME are one of the EMIR Trade Repositories also planning to offer services under REMIT. REGIS-TR and Unavista have also made similar announcements.

More pushback on MiFID II from across the commodities sector

The pushback against the upcoming commodities rules under MiFID II continues, firstly with more concern from the farming sector, this time expressed on the Herald Scotland website in this article (free subscription). The concern is that the ability to trade in futures and forwards will be curtailed or become more expensive. We have seen such … Continue reading

ETS Update

There have been a few developments and articles since our last post on the Emissions Trading Scheme: It has been reported that emissions capped by the ETS in 2014 have fallen according to this article on the Reuters website. The article contains a variety of statistics on actual emissions measured, both within the EU and also … Continue reading

Mandatory margin rules for uncleared OTC deals delayed

IOSCO and the Bank of International Settlements yesterday announced that the upcoming rules which require those who trade bilateral uncleared OTC derivatives trades (over 50m Euro) to post initial and variation margin will be delayed by 9 months. The full press release can be found here. The rules were to come in at the end of … Continue reading