Risk-reducing transactions more transparent
- Category: MiFID
Non-financial companies are required to include in their internal policies "measures to ensure" that the risk-reducing transactions serve no other purpose than covering risks directly related to the commercial activities of the non-financial entity, and that any transaction serving a different purpose can be clearly identified.
If they still want to remain non-financials, obviously…
The clock starts ticking to be authorised under MiFID II
- Category: MiFID
Overall, when it comes to transitory issues, it is useful to note that for an anciliary activity exemption the clock has started ticking as from July 2015 i.e. well before 2017, which is is the date when MiFID II will enter into force.
It follows, the trading activity executed as from July 2015 must be assessed against the relevant thresholds.
Hedging - tornado approaches
- Category: EMIR
Clearing thresholds' calculations are quite complicated - partially on account of requirement to classify all OTC derivatives transactions as hedging or non-hedging (which fatigue applies even to the smallest counterparties).
There is a chance, in the foreseeable future the companies' procedures setting the company's position versus clearing threshold may become simpler, but this novelty unnecessarily would mean less regulatory burden.
Individual client accounts uneasy take-up
- Category: EMIR
Why do firms choose omnibus client accounts ignoring better protections offered by the individual form of segregation?
Central Dispatch Electricity System - only as a derogation
- Category: Network Codes
Is there still a room for Central Dispatch Model is the EU Internal Electricity System?
In the recent Recommendation No 03/2015 of 20 July 2015 on the Network Code on Electricity Balancing, the European overseer of electricity markets - the Agency for the Cooperation of Energy Regulators (ACER) - departs from its earlier stance expressed in the Framework Guidelines on Balancing (which acknowledged the parallel existence of central dispatch and self-dispatch arrangements of European electricity markets when drafting the Network Code on Electricity Balancing) and nominates the Self-Dispatching Model to be "the primary dispatching model to be applied by TSOs for determining generation and consumption schedules".
Consequently, Central Dispatch has been allowed for Transmission System Operators only as an exemption, provided the relevant authorities' approval has been granted.
10 MW REMIT reporting threshold - manageable by the way of contracting
- Category: REMIT
In determining whether the electricity production facility is able to make use of the de-minimis exemption from the REMIT reporting requirement the three elements are relevant:
(1) spatial proximity (whether installations are spatially separated)
(2) ownership structure, and
(3) marketing for several smaller installations in one common contract/multiple contracts.
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