The Council of the EU has adopted a draft Regulation extending an exemption for commodity dealers under EU bank capital requirements.

The Capital Requirements Regulation exempts commodity dealers from large exposure requirements and from own funds requirements until 31 December 2017. It also requires the Commission to prepare, by 31 December 2015, reports on the prudential supervision of commodity dealers and of investment firms in general. That review is still underway and it is likely that new legislation that may be required as a consequence would only be adopted after 31 December 2017. Therefore to avoid commodity dealers from being in an unstable regulatory environment in the short term the draft Regulation extends the exemption until 31 December 2020.

The European Parliament approved the draft Regulation on 11 May 2016. The Regulation enters into force twenty days after its publication in the Official Journal of the EU.

View Commodity dealers: exposure exemption extended, 30 May 2016