The UK is still a member of the EU until its formal exit and so EU law continues to apply to energy and commodities trading. But, James Maycock, Forensics Investigations and Complaince Director, KPMG in the UK, explains why companies must start preparing for the medium, long term and beyond now.
- Foreign energy and commodity firms trading commodity derivatives in the EU for hedging or speculative purposes will be able to continue to do so under the existing regulatory regimes.
- In the medium term companies should be preparing for MiFID II, which will have significant impacts on EU energy and commodity markets
- If the UK does not join the European Economic Area and an amended regime cannot be agreed, overseas energy and commodity firms with regulated UK entity trading derivatives will no longer be able to use the MiFID II passport to provide investment services and activities throughout the EU.