Joint Energy Associations Group recommendations for the review of the commodities market under MiFID II

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The Joint Energy Associations Group (JEAG), composed of BDEW, EFET, Eurelectric and Eurogas, has prepared energy sector recommendations for the European Commission’s assessment of commodity derivative markets under the revised Markets in Financial Instruments Directive (MiFID II).

JEAG strongly believes that the assessment should retain the current scope of the Ancillary Activity Exemption for Energy Market Participants to maintain EU’s global competitiveness and foster the energy transition.

The Ancillary Activity Exemption adequately reflects the specific business models of energy market participants and is a pillar of liquid energy markets in the EU. Its reversal would create adverse consequences well beyond the scope of derivatives trading. Therefore, the commodity markets review should consider the following key points:

1. Retain the Ancillary Activity Exemption for Energy Market Participants;
2. Maintain the EU’s global competitiveness, and avoid creating an uneven international playing field by keeping the current scope of the Ancillary Activity Exemption;
3. Recognize the key role that energy markets play to promote the energy transition under the Green Deal and REPowerEU plan;
4. Conduct a comprehensive assessment of energy markets during the MiFID II commodities review, considering existing regulations (MiFID/IFR) and recent legislative changes (EMIR/REMIT) of the Ancillary Activity Exemption as well as the necessity of a secure supply of energy for the EU.

Download the full paper below.