FIA and ISDA have submitted a joint response to the European Commission’s targeted consultation on the review of the functioning of commodity derivatives markets and certain aspects relating to spot energy markets.
The European Commission is collecting responses to feed into its MiFID Art. 90 report exercise, with a view to making the EU commodity derivatives markets more efficient and resilient. This is to deliver benefits to the real economy and is in line with the Commission’s general objective to reduce regulatory burden on EU firms. It will also allow the Commission to collect evidence to feed into broader reflections on the wholesale energy and related financial markets that may inform future policy choices in this area. FIA and ISDA support the current rules applicable to EU commodity markets across position limits, position management and the ancillary activities exemption.
The associations oppose a potential re-opening of level one MiFID legislation to accommodate proposals made in a Mario Draghi report, such as considerations for stricter position limits or the re-introduction of price caps. The associations also support improved data sharing between regulators across financial and energy markets, provided this will not require the introduction of new obligations on market participants.
Following their review of the feedback, the associations expect the European Commission to publish a report during the summer of 2025.
Read the full response here.
