ESMA updated the questions and answers (Q&As) on the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) regarding commodity derivatives topics. This update includes clarifications on issues related to the MiFID II/MiFIR regime for commodity derivatives, including on position limits and position reporting.
The update includes new or revised answers on the following topics:
- Position limits. The Q&A clarifies the circumstances under which less liquid contracts may receive bespoke position limits established by the relevant national competent authority. In addition, it introduces a tailored approach to the development and application of commodity position limits for spread contracts.
- Position reporting. The Q&A clarifies that where an OTC contract is economically equivalent to more than one exchange-traded derivative (ETD) contract traded on a trading venue in the EU and where those ETD contracts do not qualify as the same derivative contract in accordance with Article 5(1) of RTS 21, positions in the economically equivalent OTC contract can be reported to any of the national competent authorities of the trading venues where the ETD contract is traded.
The purpose of this document is to promote common supervisory approaches and practices in the application of MiFID II and MiFIR in relation to commodity derivatives topics. The Q&A document provides responses to questions posed by the general public and market participants in relation to the practical application of data reporting requirements.
Keywords: Europe, EU, Securities, Q&A, Commodity Derivatives, Position Limits, Position Reporting, MiFID/MiFIR, ESMA
MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.
PRA published a public working draft, or PWD, of version 1.2.0 of the BoE Insurance XBRL taxonomy, along with the related technical artefacts.
CPMI published a report that sets out nineteen building blocks for a global roadmap to improve cross-border payments.
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.
EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.
ESMA published the final report on the guidelines on securitization repository data completeness and consistency thresholds.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.