ESMA have just issued these final guidelines on the definition of a derivative under MiFID I (and therefore also EMIR). The guidelines will apply from August.

These guidelines are important for those in the commodities markets, since they define which trades are in EMIR, and therefore need to be included in EMIR reporting and the calculation of the clearing threshold, amongst other things. The topic has been the subject of much discussion and a consultation that closed a few months ago. The guidelines apply under MiFID I. MiFID II has a further re definition of the rules, which will come into force on 3rd January 2017.

A full analysis of the guidelines will follow.