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
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
EBA published guidelines on loan origination and monitoring, which bring together prudential standards and consumer protection obligations, along with the anti-money laundering and the Environmental, Social, and Governance (ESG) considerations.
EBA published a consultation paper on the draft amended regulatory technical standards on own funds and eligible liabilities.
EBA published a report on convergence of supervisory practices in 2019.
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.