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  • EU Guidelines on Commodity Derivatives Definition Published
    The European Securities and Markets Authority has published amended Guidelines on definitions of commodity derivatives and their classification. The amended Guidelines, which are an update to the guidelines originally adopted under the previous Markets in Financial Instruments Directive (MiFID I), have been adapted to the new MiFID II regulatory framework without amending their substance.

    Although the kinds of derivatives that are regulated are set forth in the directive, the detail of this is left to implementation, meaning that there is no uniform definition of derivatives in the EU under MiFID II. ESMA published its original guidelines as it was concerned that, without any common definition, the European Market Infrastructure Regulation may be inconsistently applied where it refers to the MiFID commodity derivatives definition, with differing outcomes for areas such as reporting and margin requirements. As this situation remains unchanged under MiFID II, ESMA has formally adopted the Guidelines under the new Directive.

    The Guidelines are also relevant to the reporting obligations under the Regulation on wholesale energy market integrity and transparency, known as REMIT. The amended Guidelines will apply two months after the date of their publication on ESMA’s website in all official languages of the EU.

    View the amended Guidelines.

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