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Mifid

MiFID II update – 1st week of February – new limits and more (updated)

MiFID II has been in place for over a month. While the rules are “settling in”, there have been various developments since our last post (see here).

On the position limits side of things, there have been a few updates, including many changed limits from the FCA, which can be found on the updated spreadsheet here.  The ICE Feed Wheat Future limit has been lowered, and this will apply from 8th April. Many other limits have been increased. There are also additional listings such as the UK Base Electricity Future on ICE which does not yet have a limit. (Please contact ETR Advisory for a “differences” version of the sheet).

BaFin’s indicative position limits page has been updated here in English, and France’s AMF limits are now available here in English.

This article on FT.com reports that over 1,000 position limit exemptions have been issued by the FCA alone. It also discusses the impact of the rules on liquidity, and the shift of some contracts to the US.

Other parts of MiFID II
ESMA has been issuing some updated Questions and Answers documents on MiFID Ii, for example an updated one on transparency which can be found here. The central list of trading venues continues to grow, but is not yet complete. It can be found here.

This article on the Money Marketing web site reports on how the FCA is already gathering  over 30 million records per day from transaction reporting, which will be used in future to enforce anti abuse legalisation such as MAR. One month on, some are finding the rules of more benefit than others, according to this article on City AM. However, some such as Michael Spencer, chief executive of the NEX Group, feel that the UK may wish to rein back some of MiFID II after Brexit, as reported here on the Financial News web site.

We will no doubt see many more pieces of news over the coming weeks.

 

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.

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