16 February 2024

FESE response to the UK FCA consultation on the commodity derivatives regulatory framework

FESE calls on the FCA to reconsider its proposal for enlarging the reporting of derivatives traded on overseas markets. It should be avoided that UK trading venues can request position data from direct foreign competitors as this data constitutes commercially highly sensitive information.

• FESE supports the changes proposed by the FCA to the position limits regime. The new rules should alleviate the rigidity of the system by identifying a set of contracts denominated “critical”, to which position limits apply.
• FESE also fully agrees with the transfer of responsibilities for setting position limits from the FCA to the relevant trading venues. Consequently, FESE suggests keeping the list of aspects that trading venues must keep into consideration when designing position limits high-level, without specifying the details in the legislation.
• Finally, FESE calls on the FCA to reconsider its proposal for enlarging the reporting of derivatives traded on overseas markets. It should be avoided that UK trading venues can request position data regarding positions in derivatives traded in overseas markets with whom they are in direct competition as this data constitutes commercially highly sensitive information.

Full paper

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