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Mifid, Uncategorized

Updated FCA page on MiFID II Commodity Derivatives

The UK’s Financial Conduct Authority (FCA) has updated its page on the aspects of MiFID II applying to commodity derivatives. The page can be found here and focuses on position limits, position reporting and the ancillary activity test.

The page now outlines:

  • Contract information which trading venues are required to submit with respect to position limits.
  • That non financial entities may apply for hedge exceptions from position limits. The page states that the FCA’s exemptions will be uncapped. However if there is a significant change from the rationale from the exemption applied for, a new application is required.
  • That venues will be required to report on venue positions, and investment firms will be required to report Economically Equivalent OTC trades.
  • How firms using the ancillary activity exemption under MiFID Article 2(1)j should notify the FCA of the use of the exemption.

There are now less than 5 months until MiFID II starts to apply, from 3rd January 2018.

 

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on energy and commodity regulation. He has more than 20 years of experience in energy and commodity trading, credit, risk and financial technology. He has delivered a series of trading, credit and risk solutions to a wide variety of oil majors, power and gas companies and investment banks. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy 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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