Reed Smith Client Alerts

HM Treasury has published a statutory instrument revising the Regulated Activities Order to clarify what will happen in the event that a commodity derivatives trading firm cannot perform the necessary calculations to determine whether it falls within the Article 2(1)(j) MiFID II ancillary exemption, because the relevant data is not available from an official source. The instrument provides timely clarifications for both commodity traders and financial institutions who might deal with these counterparties once MiFID II comes into force on 3rd January 2018. The publication follows an extended period of engagement by commodity traders, financial institutions, trade associations and law firms, including Reed Smith.

Authors: Chris Borg Brett Hillis Simone Goligorsky Alexander Murawa

Type: Client Alerts

Following an extended period of engagement by commodity traders, financial institutions, trade associations and law firms such as Reed Smith, HM Treasury has published a statutory instrument revising the Regulated Activities Order (the RAO)1 to clarify what will happen in the event that a commodity derivatives trading firm (a Commodity Trader) cannot perform the necessary calculations to determine whether it falls within the article 2(1)(j) MiFID II ancillary exemption (the Ancillary Exemption), because the relevant data is not available from an official source.