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.