MiFID II, PRIIPs, and EU Benchmarks Regulation

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MiFID II, PRIIPs and EU Benchmarks Regulation will introduce new obligations for EU trading venues and their participants, including new position limits and block-trading limits, new transparency and reporting requirements, and new registration requirements for some market participants.

These EU regulatory initiatives only apply directly to EU trading venues and market participants – the regulatory framework for CME Group’s markets (CME, CBOT, NYMEX and COMEX) is that established under the U.S. regulatory framework – this includes for CME’s global slate of Energy products, including European Gas, Power, Coal and Emissions, which are listed on NYMEX and cleared by CME Clearing Inc, both of which are regulated under the CFTC’s regulatory framework.


Markets in Financial Instruments Directive (MiFID II) and Markets in Financial Instruments Regulation (MiFIR)

Effective 3 January 2018, MiFID II and the accompanying MiFIR, collectively MiFID II, will significantly impact financial markets in the European Union (EU). 

MiFID II aims to capture trading on an EU trading venue; it does not apply directly to U.S. trading venues. There may be some compliance requirements for EU participants in CME Group markets if those participants are regulated in the EU as investment firms (MiFID-authorised firms) – e.g. transaction reporting.

External Information

Other Resources

Transaction Reporting Under MiFID II

MiFIR mandates the reporting of trades undertaken by EU investment firms to their local regulator (National Competent Authority) either directly or via an Approved Reporting Mechanism (ARM). EU investment firms will have to report transactions in any financial instrument admitted to trading or traded on an EU trading venue. EU investment firms may have a reporting obligation for some trades executed on CME Group U.S. markets due to their own EU regulatory status.

The MiFIR Transaction Reporting Product File produced by CME Group will assist our EU investment firm clients in determining which CME Group contracts may be subject to the transaction reporting obligation under MiFIR.

For contracts on CME Group U.S. markets that EU investment firms have a MiFID II transaction reporting obligation due to their own EU regulatory status, CME Group will provide, on request and with the appropriate agreement in place, reports populated with available data to assist MiFID firms with their reporting obligation. Please find the list of products under the Resource section.

The list is not comprehensive and some of our other contracts may also be reportable. It is based on our interpretation of MiFIR and guidance on transaction reporting published by EU authorities as understood as of August 2017. This interpretation may prove to be incorrect, it may change and the table may not be updated. The purpose of the table is to provide general information. It does not contain a full analysis of the law and needs to be read in the context of MiFID II as a whole. Nor does it constitute an opinion of CME Group on the points discussed. CME Group makes no representations or warranties as to the completeness or accuracy of the information contained in the file and we advise our clients to carry out their own analysis and, if necessary, to take specific legal advice on any particular matter which concerns them.

Transaction Reporting Contacts

For more information, or to sign up to receive the report, contact us:

GAM EMEA
+44 20 3379 3754

Resources


The European Union Regulation on Packaged Retail and Insurance-Based Investment Products (PRIIPs)

The EU Regulation on PRIIPs goes into effect 1 January 2018. CME Group is aware of the potential application of PRIIPs to listed derivative products, and that it may apply extraterritorially beyond the EU to include products traded on U.S. markets. CME Group is assessing the potential impact of PRIIPs on our U.S. markets and is in conversations with industry participants to understand their regulatory obligations under this regulation.

For contracts on CME Group U.S. markets that may be subject to PRIIPs, we are considering possible solutions that we may implement in respect of this regulation. We are not at a point where we can share any information, however we will update our website with relevant information as we progress our assessment and work on this topic. We encourage you to review this page periodically for updates.


The European Union Regulation on Benchmarks

The EU Regulation on Benchmarks goes into effect 1 January 2018. CME Group is aware of the potential application of BMR to listed derivative products and associated data, and that it may apply extraterritorially beyond the EU to include products traded on U.S. markets. We are assessing the potential impact of BMR on our U.S. markets and are in conversations with industry participants to understand their regulatory obligations under this regulation.  

For contracts on CME Group U.S. markets, and associated data, that may be subject to BMR, we are considering possible solutions that we may implement in respect of this regulation. We are not at a point where we can share any information, however we will update our website as we progress our assessment and work on this topic. We encourage you to review this page periodically for updates.


CME Group is happy to assist and to provide information in relation to participation in our U.S. markets, however please note we cannot provide legal advice, so any information we share is purely based on our interpretation and does not constitute legal or other advice.  You should always undertake your own research or obtain your own advice relating to your legal or regulatory obligations, and should not rely on any information provided by CME Group.