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Mifid

This category contains 338 posts

European Commission provides answer on Ancillary Activity test

The European Commission DG FISMA has provided this written answer to ESMA on the outstanding question of whether the market size test portion of the Ancillary Activity test must be calculated on a group basis, following a request for an answer earlier this year (see here). The letter states that the  “test needs to be calculated … Continue reading

MiFID II update – LEIs and more

ESMA has announced that the requirement for Investment Firms to report transactions only using Legal Entity Identifiers (LEI) will commence on the 3rd July, following a 6 month grace period announced shortly before the start of MiFID II (see here). In effect, this requires all relevant counterparties to have LEIs no matter where they are … Continue reading

Possible ACER change in authority, ESMA speech, and a course

The European Council yesterday agreed its position to update and increase the role of the Agency for the Coordination of Energy Regulators (ACER), who are, amongst other things, responsible for many parts of REMIT, including data collection and cross market monitoring, as well as other areas such as network codes. The press release from the … Continue reading

5 months later, how is MiFID II going?

Yesterday was the 5 month anniversary of the start of MiFID II.  In many ways, things have settled down since then, although there have been some developments over the past weeks (see here for a list of these already covered). While all has been relatively quiet in the world of energy and commodities, there is … Continue reading

ESMA issues position limits opinion document – agrees with FCA

ESMA has issued this opinion document  on the ICE Low Sulphur Gasoil 1st Line contract, following opinion documents issued previously (see here). The document agrees with the limits proposed by the FCA (see here), in setting the spot month limit at 25% of deliverable supply and the other months at 27%. ESMA has also agreed to … Continue reading

Removed and updated position limits by the FCA and BaFin

The UK’s FCA has updated their master list of position limits, which can be found here. The primary change is the removal of a contract on an OTF for physical power delivered in Switzerland, which may have some general  implications around the scope of limits. The FCA updates the spreadsheet from time to time, with … Continue reading

Push back on “gold plated” Bank of England rules on algorithmic trading

Several industry associations and banks have pushed back against proposals by the Bank of England to roll out an enhanced version of the rules governing algorithmic trading in financial instruments, as reported here on the Bloomberg web site. The Bank of England released this consultation paper in February, which proposes rules that go over and … Continue reading

$2m settlement for position limit breach, wash trades and incorrect submission in the US

The CFTC has settled with Glencore Agriculture B.V. and Glencore Ltd $2 million for breaches of position limits in ICE cotton futures contracts, executed trades which are construed as wash trades, and making incorrect submissions. The CFTC press release can be found here and the order here. Glencore are alleged to have broken position limits … Continue reading

IOSCO document on reporting data elements

IOSCO and the Bank of International Settlements have issued this document entitled “Harmonisation of critical OTC derivatives data elements (other than UTI and UPI)”. It looks at the data elements used to report derivatives under rule sets such as EMIR or the Dodd Frank Act, and proposes a standard format for the data elements typically … Continue reading

MiFID II update – LEI and ISIN issues, and updated lists

The effect of MiFID II is now being felt in some quarters in the wider financial world since our last post here. This article on Finextra reports on this webinar run by the A Team Group entitled  “MiFID II Trading Technology Requirements: What Worked and What Hasn’t?”. The report initially focuses on streams that firms … Continue reading