There are many discussions and rumours in the market at present about a meeting that took place with the FCA last week.

There are different views of what was discussed. The prevailing view what was said is that any physical forward traded via a broker that runs a platform which is an MTF is considered a derivative under EMIR. This would apply no matter how it was executed, even if by voice.

If this is so, it would have a major impact on energy companies. It could bring into scope a great deal of extra trades. And more importantly, it will take many over the clearing threshold which would lead to a rather high extra capital requirement.

More information will be shared as it becomes available and what was actually discussed is firmed up.