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Comments by Steven Maijoor of ESMA on MiFID II

Yesterday (15 July) saw a MiFID II/MiFIR “Scrutiny Hearing” held at the European Parliament, at which Steven Maijoor, chair of ESMA, presented. The opening statement, which can be found here, contains some interesting comments. Of interest to those in commodity and energy trading will be the parts on position limits and the ancillary activity test.

In terms of position limits, there has been a great deal of debate about the number of limits, and the range of the limits, with some arguing that in illiquid markets the maximum limit should be higher and that in liquid market the range should also be different. The statement argues that the flexibility given to local regulators means that these should be set appropriately.

There has been a huge amount of debate about the ancillary activity tests, with the currently proposed ones potentially taking many energy and commodity companies into financial regulation. It was already announced by Steven Maijoor  that the tests are subject to review and the detail around the new ones are eagerly anticipated. What is clear from the statement is that the intent of the rule changes is still to move many market participant into financial regulation.

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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