BP have now joined the many parties pushing back against by the currently proposed exemption reduction in MiFID II, as outlined in this article on the Reuters web site. The comments were made at the FT Commodities Summit this week.
This time the comments are focused on the oil sector, targeted at the impact that could follow if oil traders were subject to the “full MiFID” including compliance with CRD IV. It is argued that the capital requirements, as well as the disclosure requirements, would cause liquidity to reduce.
There is also push-back on the position limits regime, which will apply regardless of exemptions. An example is given of trading around the AOC in the Spanish gas market struggling if no participant may hold more than 25% of available contracts ( although the proposed technical standards do provide for some flexibility in the 25% number of a case by case basis, up to 40%).
The battle for compromise is heating in the lead up to the final thresholds and RTS being set. So far the signs have been that a significant compromise is unlikely. However, now that other regulators have joined in with the objections, we may well see more concessions.