ESMA yesterday published the speech given by Stephen Maijoor, chair of ESMA to ECON(European Parliament Committee on Economic and Monetary Affairs), about MiFID II. The speech can be found here.

Part of the speech looks at the issues around commodity derivatives (page 2). In particular, the issue of the narrowing of exemptions, and the potential bringing of many energy and commodity companies into MiFID. He again stresses the fact that the intent if the rules is to bring many more market participants into financial regulation (referred to in the speech as those who engage in “speculative activity”). On the other hand, there is acknowledgement of the fact that exemptions are intended to apply to those are “commercial users and producers of commodities”. There is a commitment to review the thresholds in the last consultation paper.

This follows on from varying degrees of push back on the reduction in exemptions, both in the consultation responses and also in other places, most recently in a paper issued by Trafigura, as well as during the open hearing in Paris.

It remains to be seen how many energy and commodity companies will need to get MiFID licences. Indications are that a significant proportion will find themselves losing their exemptions.