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Mifid

The wide impact of MiFID II – articles from across the commodities industry

MiFID II will have an impact on the wider commodities industry, with the issues now being picked up in various sectors.

This article on the Hellenic Shipping News website is advising those in the industry of the possibility of losing MiFID exemption status, with all of the work that this involves.

Similarly, this article in Farmer’s Weekly is once again alerting to the possible loss of exemptions. It follows this article, also in Farmer’s Weekly, a few weeks ago.

This week’s ETRC Summit also covered many of these issues, especially as they relate to energy, as well as other commodities. On the one hand, MiFID II is likely to make the running of a trading operation more complex, and could well reduce liquidity, and margins. On the other, the clear intent is to further relate those who engage in the trading on commodities.

The articles above do demonstrate that the law of unintended consequences are likely to apply to the implementation of the rules. But at the same time it is worth bearing in mind that more regulation of commodities markets was in fact the intent.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.

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