The FCA has updated its webpage concerning MiFID II and the introduction of position limits and reporting regime for commodity derivatives.

The FCA notes that under MiFID II, firms or individuals who trade in commodity derivatives on a professional basis, may under article 2(1)(j) MiFID II be able to make use of an exemption from authorisation. This is through an assessment of their trading activities in accordance with the tests in RTS 20 (Commission Delegated Regulation (EU) …/… of 1.12.2016 supplementing MiFID II with regard to regulatory technical standards for the criteria to establish when an activity is considered to be ancillary to the main business).

The FCA notes that those firms or individuals who trade on this exemption from authorisation are required to notify the FCA annually through Connect. The notification form can be found on the Connect landing page. In addition, the FCA has also published a notification guide assisting firms and individuals in completing their notification forms.

View FCA notification guide for firms and individuals wanting to rely on ancillary activity exemption under MiFID II, 19 July 2017