you're reading...
MAR, Mifid

ESMA releases new MiFID II and EAMP information as the clock counts down

As the last full working week before MiFID II starts begins, ESMA has released several new pieces of information, some of which is very relevant to those in energy and commodities.

A new version of the commodity derivatives questions and answers document has been released, and can be found here. It contains several important answers on position limits, such as how the “spot month” period is calculated, and also on position reporting, which is occupying a great deal of time in many companies. At the same time ESMA has updated the previously released “master” list of bespoke limits here, and also published this opinion document on the calculation of the ICE Crude Futures limit. The document explains the wide definition of “deliverable supply” used.

ESMA has also published this opinion document on the topic of whether positions on third country venues may constitute “Economically Equivalent OTC” contracts(“EEOTC”). Previously ESMA had stated that any venue recognised as such for the purposes of position limits would not be considered “OTC” and therefore not EEOTC. A list was to be published in good time for the deadline for such purposes. This new opinion keeps to this view, but postpones the publication of the list until next year. In the interim, third country venue positions will not count towards position limits as EEOTC by default.

Those who may be under the Emissions Allowance Market Participant (EAMP) regime under MAR, which starts in full at the same time as MiFID II, received a new answer in the updated MAR Q+A which was also published last week (see here).  This gives guidance as to how to calculate the thresholds. The last weeks have seen more guidance emerge on this topic (see here).

ESMA also updated several other documents including this updated Q+A on post trade issues, adding an answer on the segregation level for indirect clearing accounts. This table on deferral regimes was also published.

We can expect more updates as the week unfolds. It is likely that many will not have the same level of seasonal break enjoyed in previous years as 3rd January approaches.

 

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.

Discussion

Trackbacks/Pingbacks

  1. Pingback: ESMA releases new MiFID II and EAMP information as the clock counts down - Global Energy Post - December 18, 2017

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s