Brussels, 18 May 2020 | Europex fully supports the underlying policy objectives of MiFID II / MiFIR and the G-20 Pittsburgh commitments to “improve the functioning and transparency of financial and commodity markets and address excessive commodity price volatility”. However, more than two years after the MiFID II / MiFIR framework started to apply, we believe that these objectives have not yet fully materialised as far as commodity derivatives markets are concerned, notwithstanding the heavy burden already imposed on the industry. This concerns in particular the MiFID II position limits and position management regime as well as the MiFIR pre-trade
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Europex response to ESMA consultation paper on MiFID II review report on position limits and position management
Brussels, 6 January 2020 | Europex, the Association of European Energy Exchanges, welcomes the opportunity to contribute to the ESMA consultation paper on the MiFID II review report on position limits and position management in commodity derivatives. Europex has actively participated in previous MiFID related consultations, such as the call for evidence on position limits that took place last summer. While the review fulfils a legal obligation under MiFID II, this exercise is also a vital opportunity to assess the impact of position limits and position management on commodity derivatives markets and to ensure the regime is working in practice
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Europex response to the ESMA call for evidence on position limits in commodity derivatives
Brussels, 5 July 2019 | Europex, the Association of European Energy Exchanges, welcomes the opportunity to contribute to the ESMA call for evidence on position limits and position management in commodity derivatives. Europex has actively participated in previous public consultations on the MiFID II/MiFIR package, including on the position limit regime as well as on its implementing legislation and the related regulatory guidance. The present call for evidence offers an important opportunity to review the regime 18 months after its entry into application. Importantly, Europex supports the policy objectives of MiFID II/MiFIR to ensure transparency and prevent abuse in commodities
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Europex response to the BMF consultation on MiFID II experiences
Brussels, 15 March 2019 | Europex, the Association of European Energy Exchanges, welcomes the opportunity to contribute to the present consultation on MiFID II / MiFIR experiences1. In the following, we would like to share our concerns on three main aspects: 1) pre-trade transparency requirements for commodity derivatives, 2) position limits for commodity derivatives and 3) the scope of the hedging exemption in relation to the previous two points. 1) Pre-trade transparency requirements for commodity derivatives (MiFIR, Arts. 8 & 9) Europex members have long argued that the MiFIR pre-trade transparency regime in its present form is not fit for purpose
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MiFIR pre-trade transparency regime: making it work for commodity derivatives – recommendations
Brussels, 25 June 2018 | The purpose of this paper is to provide ESMA and National Competent Authorities with specific recommendations in support of their work with regard to amending certain parts of Regulation 2017/583 (‘RTS 2’)1, relating to the MiFIR pre-trade transparency regime for non- equity products. Europex members have long argued that, in its present form, the regime is not fit for purpose and cannot be applied to trade registration facilities in energy derivatives markets. Should these pre- arranged trades be no longer reported to regulated markets for clearing purposes, this would compromise their vital role in supporting
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The MiFIR pre-trade transparency regime: making it work for commodity derivatives
Brussels, 25 April 2018 |The purpose of the present paper is to provide ESMA and all interested National Competent Authorities (NCAs) with detailed information in support of their work in amending specific aspects of ‘RTS 2’ in relation to the MiFIR pre-trade transparency regime for non-equity instruments. Europex members have long argued that the MiFIR pre-trade transparency regime does not apply to trade registration. We consider that the regime in its present form is not fit for purpose and cannot be applied to trade registration facilities in energy derivatives markets without compromising their vital role in supporting the hedging activity
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The need to simplify and streamline reporting obligations under EMIR, MiFID II/MiFIR and REMIT – Europex response to Commission fitness check on supervisory reporting
Brussels, 14 March 2018 | Europex welcomes the opportunity to take part in the “fitness check on supervisory reporting” of the European Commission and to discuss the effectiveness and efficiency of existing EU-level supervisory reporting requirements. We deeply believe in the simplification and streamlining of regulatory reporting. Electricity and gas derivative contracts are covered by reporting obligations stemming from four pieces of legislation: namely EMIR, MiFID II/MiFIR, REMIT and MAR. This constitutes a heavy reporting burden for energy exchanges and clearing houses as well as for market participants. Consequently, there is a need to streamline the requirements in order to
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The entry into application of MiFID II / MiFIR: the start of a new era of European energy commodity derivatives trading
Brussels, 3 January 2018 | Today’s entry into application of the revised Markets in Financial Instruments Directive (MiFID II) and its accompanying Regulation (MiFIR) marks a major milestone in European energy commodity trading. The great majority of gas and electricity derivative contracts as well as all EU ETS emission allowances are now classified as financial instruments – along with all other commodity derivatives. New rules for market venues, like energy exchanges, where these financial instruments are traded, apply along with numerous other changes affecting market participants and market infrastructure providers. Please read the full statement below.
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Joint statement by EFET, Europex, FIA and LEBA: EFET and FIA develop an industry standard to facilitate position reporting under MiFID II
Brussels, 8 November 2017 |The European Federation of Energy Traders (EFET), FIA, Europex and LEBA are pleased to present the common EFET-FIA ITS4 schema for position reporting under the recast Markets in Financial Instruments Directive (MiFID II). The schema is available here: http://www.efet.org/Files/Documents/Market%20Supervision/MiFID%20II/Enhanced%20ITS4 %20schema_25092017_Definitive.zip. The EFET-FIA ITS4 schema is the result of close cooperation between EFET, FIA, Europex, LEBA and a number of trading venues. It builds upon the schema developed by the UK Financial Conduct Authority (FCA) on the basis of Implementing Technical Standard 4 (ITS4) drafted by the European Securities and Markets Authority (ESMA) and adopted by the
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MiFID II: need for an equal regulatory treatment of Long-Term Transmission Rights (LTTRs) to enable an efficient regime for secondary trading
Brussels, 04 July 2017 | Europex supports the classification of Financial Transmission Rights (FTRs) as financial instruments under MiFID II. This helps fostering a well- functioning, efficient electricity markets and will ensure an efficient regime for secondary trading of FTRs. In addition, there is a significant need for more regulatory clarity as regards Physical Transmission Rights (PTRs) in order to create a level playing field for LTTRs. One of the objectives of the Capacity Allocation and Congestion Management Guideline (CACM GL) as well as the Network Code on Forward Capacity Allocation (NC FCA) is to optimise hedging opportunities for market participants,
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