Commissioner Barnier presented the following key points:

• The proper functioning of commodities markets must be a priority at the highest political level internationally. It is also a political priority of the European Commission.

• The number and type of financial players in these markets has increased substantially. Raw materials have been included as an asset class in portfolios of investors - new structured investment products have emerged, and so on. This financialisation is not just a passing fad, but a structural change in the functioning of these markets and their use by different categories of actors.

• In the absence of regulators for physical markets, as is the case for agricultural markets, the EC is thinking about how to organise the collection and dissemination of information possibly by relying on any international, European and/or existing national organisations.

• The EC wants to strengthen oversight by those who regulate positions in derivatives on commodities.

• Position limits will not be applied systematically to all markets, but national regulators under the coordination of ESMA have the flexibility to use this tool in defined conditions, namely preserving the integrity and stability of these markets.

• Finally the new Authority, ESMA, will: (i) work towards the adoption of common rules to supervise these markets, (ii) ensure a uniform and coordinated application of these rules, and (iii) strengthen collaboration at European level with regulators of the underlying physical markets.

• The revision of the Market Abuse Directive will clearly define what constitutes market abuse in the case of commodity derivatives, and will ensure that all contracts and transactions where abuse may occur are adequately covered by EU rules.

Full speech (French only)