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Article on IOSCO/BCBS “uncleared margin rules”

See here for an article on the JDSupra site by Chris Borg of Reed Smith, providing some details around the rules which will apply to derivatives trades which are not cleared. The rules are to be phased in from next year for the largest institutions, with the final phase due in 2020. The article mentions the … Continue reading

July Robusta coffee ‘squeeze’ and MiFID II

The FT has reported (here) that a dealer has amassed a large position in the August Robusta coffee contract, which has caused the spread between the July and September contracts to significantly rise. It is alleged that this activity may be part of an “abusive squeeze”, a practice where a market participant buys up a … Continue reading

FSB report on the progress of derivatives reform

See here for a report from the Financial Stability Board on the progress of OTC derivatives reforms across the world. The report looks at the state of regulatory initiatives since the 2009 G20 Pittsburgh Summit, which triggered new rule sets across the globe to further regulate the derivatives market. Such rules include Dodd Frank, EMIR … Continue reading

“Countdown to REMIT”

See here for an interesting article on the Abide Financial website entitled “countdown to REMIT by Dr Mark Earthey. There are now just over 70 days to go until the first deadline..

ACER publishes first list of approved RRMs and updated schemas

ACER have today published a list of 5 entities that have gained approval to be RRMs (Registered Reporting Mechanisms) under REMIT. The list can be found here. It includes EFETNet, Nordpool Spot, OMIE, OMIP and OPCOM. It is expected that this list will be added to frequently in the run up to the REMIT go live. The … Continue reading

LME offers compression to help prepare for MiFID II

In a move that anticipates the MiFID II rules coming in, the LME have announced that they will offer compression services for members to help reduce capital requirements, according to this article on the Reuters website. MiFID II is likely to see many commodity and energy traders being required to comply with tougher capital requirements, … Continue reading

Post on wash trades

See here for an informative post about wash trades, by Gordon Allott of Broadpeak Partners. A wash trade is defined in ACER’s REMIT guidance as: The practice of entering into arrangements for the sale or purchase of a wholesale energy product where there is no change in beneficial interests or market risk, or where the transfer of … Continue reading

More MiFID II debate

The debate on MiFID II continues, as reported here on EurActiv.com. There are two streams of push-back: – Communication between ESMA and the European Parliament – As reported a couple of weeks ago the European Parliament has been critical of ESMA for not sharing working documents early enough, with a threat to cut ESMA’s budget. … Continue reading

Market report and study on REMIT Reporting issued by ETR Advisory and ComTech Advisory

ETR Advisory and ComTech Advisory have today issued a detailed report on reporting under REMIT. The report includes a comprehensive guide as to the rules around REMIT reporting, the different facets of the reporting infrastructure, and the different types of solution that can be used to meet the requirements. It also looks at different solution configurations … Continue reading

Swiss commodity legislation

See here for an interesting article on Swissinfo.ch by Paula Dupraz-Dobias on the adoption of rules within Switzerland that are similar to those implemented in the EU, in particular EMIR and MiFID II. The article talks about the Swiss Financial Market Infrastructure Act (FMIA), also known as “FinFrag”, which is equivalent to EMIR. The introduction of rules … Continue reading