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MiFID II frame

MiFID II

MiFID II will have a significant impact on financial institutions providing services in the EU. Hogan Lovells has created this site to help firms understand what will change under MiFID II, and how those changes may affect their business.

Commodity derivatives

Commodity derivatives will be more tightly regulated

Commodity derivatives

MiFID II will bring an expanded range of commodity derivatives within the scope of the MiFID regime, including derivatives relating to emissions allowances and certain derivatives trading on organised trading facilities. In addition, the existing exemptions for firms dealing in commodity derivatives will be narrowed significantly. In particular, MiFID II will remove the exemption for persons whose main business is dealing on own account in commodities and/or commodity derivatives.

MiFID II will require national regulators to impose limits on the size of positions that a market participant can hold in in commodity derivatives.

Market participants will have to report the size of their positions in commodity derivatives on a trading venue to that venue; the trading venue will then be required to report the positions to the regulator.  

ESMA will have expanded powers to require market participants to reduce or eliminate their holdings in commodity derivatives.

Please click the link below to view our briefing note on this topic.

  • About MiFID II
  • Algorithmic and high-frequency trading
  • Commodity derivatives

    Commodity derivatives

    Commodity derivatives will be more tightly regulated

    Commodity derivatives

    MiFID II will bring an expanded range of commodity derivatives within the scope of the MiFID regime, including derivatives relating to emissions allowances and certain derivatives trading on organised trading facilities. In addition, the existing exemptions for firms dealing in commodity derivatives will be narrowed significantly. In particular, MiFID II will remove the exemption for persons whose main business is dealing on own account in commodities and/or commodity derivatives.

    MiFID II will require national regulators to impose limits on the size of positions that a market participant can hold in in commodity derivatives.

    Market participants will have to report the size of their positions in commodity derivatives on a trading venue to that venue; the trading venue will then be required to report the positions to the regulator.  

    ESMA will have expanded powers to require market participants to reduce or eliminate their holdings in commodity derivatives.

    Please click the link below to view our briefing note on this topic.

  • Data reporting services
  • Derivatives
  • Investor protection
  • Transaction reporting
  • Market infrastructure, trading venues and CCPs
  • Member state implementation
  • MiFID II texts
  • Pre- and post-trade transparency
  • Third country access

Contacts

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