ESMA · ESMA_QA_1522 Answer Published

Authorisation for dealing in commodity derivatives

Regulation
Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
Topic
Ancillary activity
Submitted
2016-12-19
Answered
2016-12-19
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Question

Do all legal entities that deal in commodity derivatives within a financial group need to be individually authorised as investment firms?

Answer

[ESMA 70-872942901-36 Commodity derivatives Q&A, Q&A 3.1] Yes. Under Article 2(1)(j), the exemption for trading in commodity derivatives only applies when the main business of the group is considered on an overall basis not to be the provision of in-vestment services within the meaning of this Directive or banking activities under Directive 2013/36/EU. Therefore, all entities within a group which cannot be considered as a non-financial group are required to obtain authorisation as an investment firm under MiFID II if they wish to trade commodity derivatives.
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This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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