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2015 draws to a close – with a consultation from ESMA

As 2015 draws to a close, ESMA have released this consultation paper  on  details of transaction reporting ,reference data, order record keeping,  clock synchronisation under MiFID II. These issues may affect some of those in energy and commodity trading, especially those who lose their MiFID exemption under the new rules. We come to the end of … Continue reading

Commission proposes a three year extension to CRD IV commodities carve out

The European Commission last week proposed extending the carve out for much of CRD IV and CRR  by three years until the end of 2020. The proposed amendment can be found here. CRD IV and CRR apply to all “investment firms”, which includes any entity that cannot rely on a MiFID exemption. A special category of … Continue reading

Steven Maijoor calls for swift resolution to MiFID uncertainty

See here for an article on the FT website quoting Steven Maijoor, chair of ESMA. He calls for the probable new timetable of MiFID II to be firmed up as quickly as possible. The idea of a delay of a year has been circulating for several weeks, and the European Parliament recently issued a statement … Continue reading

CEER press release on REMIT

The Council of European Energy Regulators (CEER) have issued this press release providing an update on the progress of REMIT. It notes that reporting for on-venue activity has started, and that NRAs (National Regulatory Authorities) have become increasingly active. It ends by reminding that by April 7th most data collection (apart from some backloading) will … Continue reading

FCA consultation on MiFID II

The UK’s Financial Conduct Authority (FCA) have issued a consultation paper on MiFID II, which can be found here. The consultation is the first in a series, and mainly covers topics related to secondary trading, such as the operation of venues (RM, MTF, OTF) as well as Systematic Internalisers (SI). It also touches upon  related topics … Continue reading

Two new ESMA documents

ESMA have recently released two new documents: MiFID II Implementing Technical Standards (here) specifying standard forms, templates and procedures on various topics, including position reporting of commodity derivatives. A consultation on access, aggregation and comparison of TR data (here) which examines how to make it easier for regulators to pull data from the various EMIR Trade … Continue reading

Large market manipulation fine in the US

Following last week’s news of a fine under REMIT for market manipulation, the CFTC have fined Total Gas & Power North America $3.6 million for a gas price manipulation, announced here. The charge is that large volumes of fixed price natural gas was traded at four hubs with the objective of manipulating indices. This article on … Continue reading

“The day of the MiFID II” – video

Platts have released this video entitled “The day of the MiFID II: How might it impact EU gas, power traders?”. It starts by reviewing the currently proposed ancillary activity exemption calculations, and ends with a discussion on the possible approvals timeline. The later will be of interest to those who wish to know if or … Continue reading

EFET calls for changes in the MiFID II ancillary activity test

EFET have today issued this statement, calling for the “capital employed” test to be reintroduced into the assessment of whether trading is an “Ancillary Activity” of the firm, determining whether they will be required to obtain a “MiFID licence”. The final draft Regulatory Technical Standard (RTS), published in late September, removed this test (which was contained … Continue reading

MiFID II letter and comment – in favour of a rigid application

See here for a copy of a letter sent by Markus Ferber MEP (Christian Democrat)  and Roberto Gualtieri MEP  ( Progressive Alliance of Socialists and Democrats) to the European Commission highlighting concerns regarding the latest Regulatory Technical Standards(RTS). The letter includes concerns that the latest proposals on position limits may not go far enough to curb undesired … Continue reading