Abstract:

The majority of commodity trading companies were excluded from 2004 MiFID 1 legislation package. The European Union's new financial markets regulation, 2013 MiFID 2, redefines exemptions and companies licenced under MiFID 2 will be forced to comply with bank-like capital, capital and liquidity requirements and broad public disclosures. The regulation will force the companies to adopt new risk management and internal capital adequacy procedures as part of their internal processes.