The report finds that differing boundaries of regulation across the EU remain a potential concern for firms seeking to operate across all Member States.
The Commission services published the report from the European Securities Markets Expert Group on commodity derivatives and related business. The report finds that differing boundaries of regulation across the EU remain a potential concern for firms seeking to operate across all Member States. The differing approaches to the application or interpretation of the exemptions, and the differential treatment of firms conducting the same wholesale activity depending on whether they are members of a banking or investment services group also causes problems, the report states.
The result is excessive complexity for firms, in a context where the wholesale nature of the business and the limited risks make it difficult to justify regulation of many firms on investor protection or systemic risk grounds, ESME says.
ESME believes a principles-based record-keeping obligation, rather than rigid prescribed-format is the appropriate approach.
ESME furthermore supports not to extend the MAD regime to Multi-Trading Facilities (MTFs) or to OTC markets and spot markets.
Report
© European Commission
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