MiFID II Q&A
The revision of MiFID I, which took the form of a revised Directive, MiFID II, and a new Regulation, MiFIR, is set to change the rules for trading commodity derivatives. The general exemption for commodity trading provided by MiFID I will be repealed and replaced by a so-called ancillary activity exemption. With this change, only traders with ancillary activities in trading commodity derivatives will stay outside the scope of MiFID II. Those who are captured by MiFID II (by exceeding the ancillary activity exemption thresholds) will be categorised as an investment firm, and, as a consequence, will have to comply with many new legal requirements. Moreover, every commodity derivative contract will be subject to position limits and trigger the obligation for market participants as well as trading venues to report positions.
Also for firms which are already subject to MiFID I, the scope of requirements is set to increase.
MiFID II Q&A
The following Q&A aims at providing an insight in the upcoming requirements that will follow from the application of MiFID II as of 3 January 2018.
Background information on the different levels of legislation
Examples of national legislation implementing the three levels of legislation
Examples of websites of relevant competent financial market regulators
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