Internal Market: call for evidence on the review of commodity and exotic derivatives business
European Commission - IP/06/1713 08/12/2006
Brussels, 8 December 2006
The European Commission has launched a call for evidence on a review of the regulatory framework concerning commodity and exotic derivatives business. MiFID and the recast CAD require a review of the regulation of the commodity derivatives business. The call for evidence relates to a report that the Council of Ministers and the European Parliament have asked the Commission to make by the end of April 2008. All interested stakeholders, including industry and individuals, are encouraged to reply. The closing date is 30 April 2007.
The European Parliament and the Council have asked the Commission to report on a broad range of issues associated with the provision of investment services in relation to commodity and exotic derivatives. There are three legal sources for this review:
The reviews mandated by the three different legal instruments are closely related and will be integrated into a single report. The report will seek to identify whether there are problems in the existing regulatory structure and examine the scope and nature of regulation in the commodity and exotic derivatives business. Any recommendations will be based on available evidence and guided by clearly defined principles and objectives which are put forward in the call for evidence.
The call for evidence also states that the interaction between the underlying
commodity markets and derivatives markets will also require a closer scrutiny of
wholesale commodity trading. DG Internal Market and Services will work closely
with other responsible DGs during the preparation of the report in order
properly to address this issue.