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.