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Mifid

Looking at the FCA MiFID II Roundtable minutes

Last week the FCA published the latest minutes of the last MiFID II implementation round-table, which can be found here. There are a few interesting points to note for energy and commodity market participants:

  • Scrutiny period – the minutes talk of an extended scrutiny period for RTS 20 and 21 (ancillary activity and position limits) once passed by the European Commission. The final version of the ancillary activity test is still awaited from the Commission, and we also heard last week of possible push back on position limits. Given that the start of MiFID II is getting closer, market participants will need to make a decision as to whether to act on the latest versions or whether to wait until they are published in the Official Journal. Given the amount of time required to create a “regulated entity”, many will consider commencing the required activity regardless of final status, albeit with an eye on possible changes.
  • Start of applications – the FCA would like to permit applications for authorisation from January. This is however subject to the passage of relevant legislation.

As the MiFID II deadline draws closer, many in energy and commodities are eagerly awaiting finalisation. Given that so far there has been no official word of any “phase in” of the requirements for energy and commodity companies, finalisation would  be preferred for many to be sooner rather than later.

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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