On 11 April 2014, the European Commission published a consultation document seeking views on where the boundary lies between what constitutes a foreign exchange (FX) financial instrument and what is not, specifically the definition of a spot FX instrument. The consultation follows concerns that have been raised about whether the regulation of FX activity is adequate and applied on a consistent basis. This is important since, once a contract is considered a financial instrument for the purposes of the Markets in Financial Instrument Directive (MiFID) then activity in that instrument may give rise to authorisation and other obligations under MiFID.  Moreover, since the definition of financial instrument in MiFID is used in a wide variety of other legislation, the classification of an FX contract as a financial instrument will bring them within the ambit of this legislation, in particular, EMIR on its reporting obligations. The consultation runs until 9 May 2014.