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MIFID II – MIFIR

Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (MiFID II) and Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (MiFIR), together with lower level legislation set a new, more transparent and challenging landscape for the trading of financial instruments, in particular commodity derivatives.

All firms trading in Regulated Markets, Multilateral Trading Facilities and Organized Trading Facilities are impacted by MIFID II/MIFIR. Firms that exceed the ancillary activity exemption threshold are classified as investment firms and are therefore inside the scope of MiFID II, whereas the others, for which trading in commodity derivatives is an ancillary activity in their business stay outside the scope of MiFID II/MIFIR, if they apply for that status to their National Competent Authority.

Commodity derivatives contracts are subject to reporting duties and position limits. OMIP has designed and implemented flexible IT solutions and processes based on industry standards, in order to allow for the usage of common workflows and systems.

Position Limits

The limits applicable to OMIP contracts are shown in the next table. The values:

  1. For SPEL Base contracts have been provisionally set by OMIP NCA (CMVM) and applicable until ESMA issues an opinion, cording to art. 57.º/5 MIFID II.
  1. For the remaining contracts a de minimis value was defined