ESMA today issued this press release announcing the availability of translated versions of guidance on the application of MiFID Annex 1 Sections C6 and C7, which form the basis of defining whether physical forward commodity trades are considered to be “derivatives” and therefore in MiFID and EMIR.

Today’s announcement simply  announces translations of the previously released guidance in English. This has been in force since August 7th.

The coming into force of MiFID II on 3rd January 2017 will again alter this definition, which can have a significant impact on whether market participants fall above or below the EMIR clearing threshold, as well as forming the basis for calculation of MiFID exemptions.