FIA and six other trade associations have jointly submitted a position paper to the European Commission, the European Parliament and a number of member states of the Council. We refer to the recent European Parliament’s ECON report on MiFID/MiFIR in relation to commodities and commodity derivatives in advance of the MiFID/MiFIR trilogue process that will begin on 18 April (see here for proposed amendments to MiFIR and here for proposed amendments to MiFID). During the trilogues, the Commission and the Council will discuss the amendments proposed by the European Parliament.
In summary, our position paper states that:
- We are concerned about the European Parliament’s proposal to review the position limit regime and the ancillary activity exemption, as they were only recently reviewed;
- We support the scope-in of derivatives on emission allowances to the position management controls regime but are concerned about the proposal to include trading volume in the weekly position reports;
- A minimum holding period for agricultural, energy and emission allowance derivatives would negatively affect the functioning of these markets;
- We see no added value in a mandate for ESMA to define the principles for establishing the main technical parameters that regulated markets shall consider when establishing their circuit breakers; and
- We support the re-introduction of the hedging exemption for the own account exemption.