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The impact of MiFID II on metals trading

Two weeks after the updated Regulatory Technical Standard (RTS) number 21 on position limits was published by ESMA, Lord Farmer has given a speech in relation to “Brexit” (the potential departure of the UK from the EU), and referred to MiFID II, in particular with respect to the metals market. An article on the speech can be found here on the Daily Telegraph web site. The speech was generally in favour of Brexit although many others  argue against departure.

A few weeks ago, EY published this paper on the possible impact of position limits on the metals market. It includes a few examples of trading strategies which may be adversely affected by the new rules. Despite the paper being written before the new version of the RTS was published, it does still apply, although a few rule,s such as that on economically equivalent OTC contracts, have been altered.

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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