ESMA_QA_1522

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1522

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Regulatory Context

Regulation : MIF2

Level 1 Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Ancillary activity

Subject Matter: Authorisation for dealing in commodity derivatives

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Question

Submission Date: 19 December 2016

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

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ESMA Answer

Answer Date: 19-12-2016

[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 document was automatically extracted from the ESMA EMIR Q&A database.