ESMA Guidelines regarding the definition of commodity derivatives


MIFID - Financial Instrument - Commodity derivatives

Annex I of Directive 2004/39/EC (MiFID) enumerates the different products that qualify as financial instruments.

The list contains the description of commodity derivatives that should be considered a financial instrument.

As a reaction to the different interpretations in the member states on what should constitute a financial instrument and what should be considered as a derivative contract under the MiFID and the EMIR, and in order to ensure the common, uniform and consistent application in all the member states of the definition of “commodity derivatives”, the European Securities and Markets Authority (“ESMA”) issued guidelines on the interpretation of the definitions in sections C6 and C7 of Annex I of Directive 2004/39/EC (MiFID).

The text of these guidelines can be found here.

These guidelines will apply as of 7 August 2015, and remain applicable until the entry into force of the MiFID II and the Commission’s delegated acts on MiFID II.

Régine Feltkamp and Joeri Danhieux