The European Commission has published three connected requests for advice on commodity and exotic derivatives and related issues:

  • Following the Committee of European Securities Regulators (CESR) and the Committee of European Banking Supervisors (CEBS) initial advice, the European Commission issued a further mandate to CESR and CEBS seeking advice on commodity derivatives. CESR and CEBS are requested to address certain issues regarding the revision of MiFID and the Capital Adequacy Directive (CAD) concerning the regulatory treatment of firms that provide investment services in relation to commodity and exotic derivatives. The European Commission wishes to receive their advice by the end of July 2008.
  • The European Commission issued a joint mandate to CESR and the Energy Regulators' Group for Electricity and Gas (ERGEG) seeking advice on whether additional measures in relation to record keeping and transparency of transactions in electricity and gas supply contracts and derivatives are necessary. It also seeks advice on a possible clarification of the scope of the Market Abuse Directive in relation to trading in commodities and commodity derivatives. The European Commission wishes to receive the joint advice in two parts, by the end of May 2008 and by the end of December 2008.
  • The European Commission issued a mandate to the European Securities Markets Expert Group (ESME) seeking advice on the functioning of the exemptions for some commodity firms from MiFID and CAD and possible changes pursuant to the Third Energy Package. It wishes to receive ESME's advice by the end of June 2008.

View European Commission requests for advice on commodity and exotic derivatives, 21 December 2007