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.