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Benchmark

Benchmark regulation responses published

ESMA have published the responses to the recent discussion paper on the upcoming European benchmark regulations. The responses can be found here. Europex highlighted their response with their own announcement here.

The responses from those in energy and commodities tend to highlight the important differences between the sector and the wider financial markets. As well as containing many “unsupervised entities”, there is widespread debate to be found in the responses as to the appropriateness of some of the tests.

The rules propose that contributors that are “unsupervised” entities, i.e. Non Financial Counterparties, will be subject to a lower level of regulation. However, MiFID II may well create more supervised entities in energy and commodity trading due to the potential loss of exemption under the ancillary activity tests, when the details of those are finalised.

 

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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