FCA has acknowledged that brokers who offer markets in gas and power forwards need clarity on the regulatory classification of trading on broker-operated systems. Physically settled gas and power forwards that are traded on multilateral trading facilities (MTFs) are MiFID financial instruments and are OTC derivatives or OTC derivative contracts for the purposes of EMIR. Market participants need to know the correct classification of trading of these products on broker-operated systems so they can comply with EMIR. The brokers have agreed with FCA to review their systems, by 16 December, so there are clear distinctions between the MTF and non-MTF services they provide. FCA says it will not expect market participants to change their current views on trading before that date. (Source: FCA to Review Gas and Power Forwards Trading)