On October 4, the European Securities and Markets Authority (ESMA) updated a question and answer document (Q&A) relating to commodity derivatives under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR).
The updated Q&A contains new questions and answers relating to the following topics:
- position management controls operated by trading venues; and
- the ancillary activity exemption, specifically relating to how the capital employed test should be calculated and how various underlyings falling under the C(10) category of financial instruments should be treated for the purposes of ancillary activity calculations.
The Q&A is available here.