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Mifid

This category contains 367 posts

Brexit: CCP equivalence to be extended

The European Commission has confirmed in a speech that the temporary equivalence of UK Central Clearing Counterparties (CCP) will be extended further than the end of March 2020, as previously granted. This story on The Trade News reports on the speech in which confirmation was made. The extension means that in the event of a … Continue reading

ESMA opens consultation on MiFID II position limits

ESMA has opened a consultation on the MiFID II position limits and position management regimes, following a “call for evidence” earlier this year (see here).  The consultation document can be found here. The document reveals that the call for evidence returned some doubts as to the effectiveness of the regime in countering market abuse and … Continue reading

ESMA call for evidence on position limits – responses published

ESMA has published the responses received to their “call for evidence” on the MiFID II position limits regime. They can be found here. The call for evidence, which can be found here, asked for input into the effectiveness of the regime that started with MiFID II on 3 January 2018. Several industry associations (FIA, ISDA … Continue reading

Fine for position limit violation in the US

The CFTC has fined Elephas Investment Management Ltd. a Hong Kong based hedge fund, for violating wheat futures speculative position limits on CBOT. The fine was set at $160,000.  The CFTC press release can be found here and the order here. The Order found that on November 29, 2017, “Elephas held a net long position … Continue reading

MiFID II position limits opinions

Last week ESMA issued 3 MiFID II position limit “opinions” on 3 commodity derivative contracts traded on EEX. This follows the publication of opinions in May (see here). Each opinion has confirmed the limit at the level originally set. The documents explain the rationale for each limit, how the deliverable supply has been calculated and how spot … Continue reading

ESMA issues updated opinion on market sizes

ESMA has issued an updated document on the market sizes to be used for the Ancillary Activity test, which must be undertaken by energy and commodity market participants who wish to use the Ancillary Activity exemption from MiFID II under Article 2(1)j. The document can be found here. The updated document, which is non binding,  adds … Continue reading

MiFID II issues

While the impact of MiFID II on the energy and commodities sector has been relatively quiet recently (see here), there has been a great deal of discussion in the wider financial sector. The issue of “research unbundling”, that is the requirement that research be charged for rather than provided as a “bundled service”, has had … Continue reading

New position limits opinions from ESMA

ESMA yesterday issued further opinion documents on position limits already set by National Competent Authorities(NCAs) under MiFID II. This follows the publication of opinions in March (see here). Each opinion has confirmed the limit at the level originality set. The documents explain the rationale for each limit, how the deliverable supply has been calculated and how … Continue reading

Another large transaction reporting fine – £34.3M

The UK’s Financial Conduct Authority (FCA) has fined Goldman Sachs £34,344,700 for transaction reporting failures under MiFID I between 5 November 2007 and 31 March 2015. The issues cover 229.2 million transactions divided into: Missing reports Incorrect reports Reports that were out of scope (which is prohibited under MiFID) The penalty notice can be found … Continue reading

ESMA publishes more MiFID II position limits opinions

ESMA has this week published seven further opinion documents relating to position limits under MiFID II, of which six relate to gas and one to power. This follows the publication of opinions in January (see here). The limits themselves have already been announced by the relevant National Competent Authority (in this case AFM, AMF and … Continue reading