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FCA MiFID II consultation – second paper issued

The FCA (Financial Conduct Authority, the UK’s National Competent Authority)  have issued a second consultation paper on MiFID II, which can be found here. This section is based on the final version of RTS 21 on position limits and several other documents. The paper includes sections on the application of the rules around commodity derivatives: Section 2 … Continue reading

Updated EMIR Q+A published

ESMA have updated the Questions and Answers document on EMIR reporting, which can be found here. There is one new answer (TR 43 on page 95), in two parts, which relate to the reporting of cleared trades: The CCP ID field may only contain the ID of an approved CCP and not another clearer. If … Continue reading

ESMA publishes final version of MAR sanctions reporting ITS

ESMA have submitted the final version of the Implementing Technical Standard (ITS) that they are required to write by MAR, which governs how NCAs (National Competent Authorities) are to report information about investigations and sanctions run and imposed. The draft ITS can be found here, with the accompanying press release here.  NCAs are obligated to report annual statistics … Continue reading

News on the Ancillary Activity test

The market still awaits the final version of Regulatory Technical Standard 20 of MiFID II, which contains the rules around the “Ancillary activity test”. This determines whether energy and commodity market participants will lose their exemption under MiFID and be required to create a “regulated entity”, which would need to comply with the majority of … Continue reading

The rate of ACER Code registration

It is now nearly two weeks since the final “backloading” deadline under REMIT passed, on 6th July. By that date, any contract that was in delivery on 7th April 2016 and struck before that date needs to have been reported to ACER via a Registered Reporting Mechanism(RRM). This post by Tilo Zimmerman of Ponton GmBH on … Continue reading

Prison sentence for “layering” in US

Michael Coscia, who was last year was convicted of spoofing/layering in the US, has now been sentenced to a three year custodial term for the offence. Articles on the sentencing can be found here on Reuters and here on Bloomberg. The case refers to the use of “layering” to manipulate the market. This involves placing large … Continue reading

EEX and Powernext’s non MTF platforms – ICIS articles

On 1st July EEX and Powernext  launched several “Non MTF” trading venues, including German and French power derivatives and several gas products. By  trading products on a non-MTF, rather than a Multilateral Trading Facility (MTF), certain physical forwards are no longer considered to be financial instruments, and are therefore not part of EMIR. This is because … Continue reading

Brexit views

It is now more than two weeks since the UK voted to leave the European Union. Since then there has been a great deal of commentary, some of which applies to energy and commodity trading. Since 24th June, the FCA have not made further public announcements adding to their steer to “keep going” with MiFID II. However, … Continue reading

Changes to EMIR reporting

Last November ESMA issued a draft version of a new standard  for EMIR reporting, which can be found here. The new format adds many new fields and changes many others, including some that will have an impact on reporting of commodity and energy derivatives. Despite being available since November, the new formats have still not been … Continue reading

REMIT deadline hours away

There are only a few hours to go until the final REMIT deadline is over. This is the deadline for the backloading of any off venue contract which was executed before 7th April 2016 but still had some outstanding delivery on that date. In the case of “framework” contracts, once reported the requirement to report child … Continue reading