Tag: Financial Conduct Authority

FIS and Generation 10 provide alternative access to physical fertilizer barge markets

London and Chicago, March 15, 2017 Freight Investor Services, a global leader in freight and commodity derivatives, and Generation 10, a provider of fintech and commodity supply chain solutions are pleased to announce the launch of a new online trading platform, initially aimed at US physical fertilizer barge markets. The platform enables traders in the Mississippi River barge markets to post themselves or have FIS brokers post firm bids and offers for physical fertilizer across the most popular NOLA fertilizer contracts. FIS is attempting to improve access to this active physical market. If you are interested in accessing the FIS... continue reading

FCA issues application and notification user guide

The Financial Conduct Authority (FCA), the UKs National Competent Authority, have issued this “application and notification” user guide for MiFID II, which commences on 3rd January 2018. Overall it outlines how market participants and venues under the FCAs jurisdiction should apply for authorisation under MiFID II in time for the deadline. The announcement also reminds … Continue reading →... continue reading

FCA MiFID II Consultation and MAR Marketwatch

The Financial Conduct Authority (FCA, the UK NCA), have issued a third consultation paper for MiFID II and MiFIR, which can be found here. This document of nearly 600 pages contains some items which will be of interest to those in the commodity and energy market: In particular, the issue of the definition of a … Continue reading →... continue reading

Brexit: Passporting aside – regulatory considerations for firms providing investment services

Sophie Crisp, Manager, Risk and Compliance | 15 Jul 2016 Since the Brexit result, the focus for many has been on firms maintaining passporting rights under MiFID. Whilst this is undoubtedly the cornerstone of a firm’s ability to provide investment services throughout the EU, there are other regulatory considerations across the end-to-end provision of investment services. MiFID II legislation regulates conduct, ensures supervisory oversight and is central to primary and secondary market activity. Assuming the UK retains European Economic Area (EEA) membership, passporting rights will be retained under MiFID but we will lose the ability to directly influence future EU... continue reading

FCA MiFID II consultation – second paper issued

The FCA (Financial Conduct Authority, the UK’s National Competent Authority)  have issued a second consultation paper on MiFID II, which can be found here. This section is based on the final version of RTS 21 on position limits and several other documents. The paper includes sections on the application of the rules around commodity derivatives: Section 2 … Continue reading →... continue reading

FCA issues new MAR guide on enforcement, penalties and decisions

The UK’s FCA (Financial Conduct Authority) last Thursday night  issued a new version of the Decision Procedures and Penalties manual (DEPP) and enforcement guide, in preparation for MAR (Market Abuse Regulation), which started to apply from last Sunday 3rd July. The press release can be found here and the document here. The updates set the scene for … Continue reading →... continue reading

Minutes of FCA MiFID II Trade Association Roundtable

The UK’s Financial Conduct Authority have published the minutes of the last Trade Association Round Table held on 25th April. They may be found here. Several parts of the minutes are relevant to the commodities and energy sector, including that on RTS 20 (ancillary activity test), RTS 21 (position Limits) and the delegated acts. Since the … Continue reading →... continue reading

Commodity Traders Ill-Prepared for Liquidity Crunch, Report Says

(Bloomberg) — Most commodity traders underestimate the risks of a major liquidity crisis that would choke off funding, according to a report by industry consultant Oliver Wyman. Traders owning assets such as refineries or mines as well as commodity-driven industrial conglomerates have failed to prioritize liquidity-risk management, according to the report “Liquidity Risk: Uncovering the Hidden Cause of Corporate Shocks.” Many unregulated businesses including trading houses haven’t taken up the more stringent risk practices adopted by banks since the financial crisis, even though access to capital is the life-blood of an industry that depends on short-term loans backed by physical... continue reading

FCA seeks input on MiFID II via Discussion Paper

The UK’s Financial Conduct Authority yesterday issued this discussion Paper asking for input on various  aspects of MiFID II. Comments are due by 26th May. The paper does not appear to address issues specific to commodity derivatives and the loss of exemptions for many of those who trade them.... continue reading

FCA Supervisory Priorities for EMIR in 2015

The UK’s Financial Conduct Authority have updated their page which outlines the supervisory priorities for EMIR, now covering 2015. The page can be found here. Of particular note: A focus on ensuring that trade reporting is running correctly. In particular LEIs must be used. Threshold calculation for non financial counterparties will be scrutinised. Compliance with the requirements for portfolio reconciliation and compression. The message is that the work must continue to get everything correct. There remains work to be done, particularly with trade reporting, and the results of the current ESMA consultation on trade reporting will need to be digested and... continue reading

Global metal trading becomes more difficult to regulate

By Henry Sanderson High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/5caf1a7c-71b0-11e4-9048-00144feabdc0.html#ixzz3JzWv1eG8 Global metals markets are becoming more difficult to regulate as manipulation takes more subtle forms and new trading platforms spring up, according to a new study. The movement of commodities trading to new hubs in Singapore, Dubai and China adds additional complications for national regulators, London-based think-tank Chatham House will say in a report set to come out... continue reading

Mercuria Unit to Be Regulated by FCA as JPMorgan Deal Nears

Bloomberg – Mercuria Energy Group Ltd. said one of its trading units fell under the U.K.’s Financial Conduct Authority for the first time as it seeks to expand services in European financial commodity markets. Mercuria Europe Trading Ltd. is authorized and regulated by the FCA under the Financial Services and Markets Act 2000, the Geneva-based company said today in an e-mailed statement. Mercuria, nearing completion of a $3.5 billion deal to buy JPMorgan Chase & Co. (JPM:US)’s physical commodity operation, joins Glencore Plc and Trafigura Beheer BV in having part of its business regulated by the FCA. After decades of... continue reading