FIA, EFET and ISDA have published a joint position paper setting our member concerns regarding the capital requirements regime for commodities. Under Articles 493(2) and 498(2) of Regulation (EU) No 575/2013 of the European Parliament and Council of 26 June 2013 on prudential requirements for credit institutions and investment firms (“CRR”) the European Commission is required to submit a report by the end of 2015 on the appropriate regime for the prudential supervision of investment firms whose business consists of commodity derivatives. The European Commission have sent a call for advice to the European Banking Authority which is expected to issue its advice by 15 September 2015. In light of this review, the joint position paper highlights the particularities of commodity firms and requests an extension of the current exemptions for commodity firms under CRR, which would provide the European Commission sufficient time for a thorough analysis of the risk profile of commodity firms before considering an appropriate regime.
