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Mifid

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 will be created as “stand alone”, since it applies to those with or without MiFID licences. There are also other interesting discussions, for example the about the applicability of the limits to both UK positions, and those linked to them. Page 4 of Annex A highlights the actual transposition.

There is also a MiFID Impact Assessment. Paragraph 10 on page 4 talks about the reduction in exemptions. This continues on page paragraphs 115 and 116, where it is estimated that the increase in the number of MiFID firms due to the loss of exemptions relative to the current number will be less than 2%.  This would appear to downplay the potential impact as seen by many members of the commodity trading industry.

Paragraphs 66 to 68 on page 10 talk about position limits. The document estimates that there are 1800 commodity derivative contracts on UK venues.

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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