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.