See here for an article on the JDSupra site by Chris Borg of Reed Smith, providing some details around the rules which will apply to derivatives trades which are not cleared. The rules are to be phased in from next year for the largest institutions, with the final phase due in 2020.

The article mentions the fact the MiFID II will widen the scope of what constitutes a “commodity derivative” when it starts on 3rd January 2017. This will widen the number of trades to which these rules will apply.

The rules do not apply to “NFC-“‘s, non financial counterparties under the EMIR clearing threshold. At this time, many commodities and energy traders have this status. However a large proportion may well lose their exemptions to MiFID as part of the new “ancillary activity” test, which is scheduled to be finalised in September. Those who lost the exemption will become “financial counterparties” (FCs) under EMIR, in which case the rules will apply to them. FCs are also subject to mandatory clearing. The consequences of losing the exemption will thus be significant.