MiFID II and MiFIR commodity derivatives
23 September 2022
Level of Significance of Change
The latest Q&A update is tied to the release of Commission Delegated Regulation (EU) 2022/1302 (RTS 21a) in April 2022 regarding position limits on commodity derivatives and changes to the ancillary activity exemption.
How Does This Change My Reporting?
Under Articles 57(1) and 58(1) of MiFID II, securitised derivatives are no longer subject to position limits and position reporting respectively.
With the update to Article 2(1)(j) of MiFID II, there is no longer a need to notify the relevant NCA of the ancillary exemption. However, firms must carry out an annual ancillary activity test in the first quarter of the calendar year and when a firm can no longer make use of the ancillary activity, the firm must apply to the NCA for a license.
What Do I Need to Do?
No reporting changes necessary.