Energy industry’s MiFID angst likely to fall on deaf ears



A consultation on MiFID ended last night, and commodity traders will be interested to see what, if any, changes might come out of the proposal technical standards.

Energy traders are worried the tests to gain an exemption from MiFID are too low as proposed (read more here). A representative from industry group EFET said almost no EU energy company could use the exemption, which could really impact the sector. EFET is working on its own impact analysis of the proposed exemptions on the energy industry, to prove its point.

But it was clear from a recent hearing Paris that regulators might not be too sympathetic.

From ESMA’s point of view, anything that is not a hedge should be considered speculative activity.  Energy companies engaging in speculative activity should be regulated in the same way as investment and financial firms, the ESMA line goes. And that was the nature of the political agreement for MiFID II, staff from ESMA added.

It will be interesting to read EFET’s impact analysis. But for the energy industry an adjustment of the threshold tests to gain an exemption or a wider definition of hedging might be the best that can be hoped for. It seems increasingly likely many energy companies should be preparing to apply for a MiFID licence.


ESMA publishes MiFID hearing video


The European Securities and Markets Authority (ESMA) has published the video of ...

Learn more

MiFID consultation responses out


ESMA has published the responses to its MiFID consultation. I am at a conference...

Learn more
More posts
Clock is ticking on MiFID II

Time is running out for energy companies that have to work out if they will be included or exempted ...

No alternative: Europe’s low-carbon energy transition will come of age in 2017

“Alternative energy”. Is that still a common phrase? In some quarters, it is. In a recent New Yo...

Should the EU get tough on the gas network codes?

Following the recent publication of the EU Agency for the Cooperation of Energy Regulators’ (ACER)...

2016 – for LNG it was the year that wasn’t

The long-awaited surge of new global LNG production has not led to the widely-expected and sustained...

Ballast bonuses sink shipping activity

The cancellation of two planned LNG vessel charters in Europe this week shows that it’s becoming h...

A crazy week in UK power. But will the madness return this winter?

In recent days, UK power has been a crazy energy market to trade in. Late in the day on 14 September...

What’s in a name? That which we call a Bulgarian hub

Bulgaria and the European Commission have recently been announcing, with much fanfare, the country i...

This winter it really is about the weather

The cliche about weather driving energy prices, in particular on European gas and Asian LNG, is just...


Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more


Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more