On 16 December 2024, the European Securities and Markets Authority (ESMA) issued a final report setting out proposed amendments to certain technical rules concerning commodity derivatives, as mandated by the adopted amendments to the Markets in Financial Instruments Directive II (revised MiFID II).

Background

Directive (EU) 2014/790 amends MIFID II and the new provisions will start applying by 29 September 2025, after transposition into national law by Member States.

Article 57 of revised MiFID II extends position management controls to trading venues which trade derivatives on emission allowances, while Article 58 of revised MiFID II amends the scope of position reporting by excluding emission allowances and introduces a new obligation to report two weekly positions reports, one of which excluding options. These changes require the revision of Commission Delegated Regulation (EU) 2022/1299 (RTS on position management controls), Commission Implementing Regulation (EU) 2017/10934 (ITS 4) as well as the article on position reporting in Commission Delegated Regulation (EU) 2017/565 (CDR 2017/565).

On 23 May 2024, ESMA published a Consultation Paper presenting the proposed amendments to the MiFID II technical standards for commodity derivatives. The consultation closed on 23 August 2024.

Final report

In the final report ESMA responds to the comments made to its earlier Consultation Paper and sets out the final proposed amendments to the RTS on position management controls, ITS 4 and its technical advice on position reporting in CDR 2017/565.

In relation to the final proposed amendments to the RTS on position management controls ESMA proposes, among other things, to extend the general monitoring obligations as well as the requirements to set, review and report accountability levels to trading venues trading derivatives on emission allowances. As regards ITS 4 and the technical advice on position reporting, the main amendments concern the exclusion of spot emission allowances from position reporting and the new obligation to publish a second weekly position report excluding options in certain circumstances.

Next steps

The amended draft technical standards are submitted to the European Commission for adoption. In accordance with Articles 10 and 15 of Regulation (EU) 1095/2010, the European Commission shall decide whether to adopt the technical standards within three months.