by Folker Trepte, Partner, PwC’s Corporate Treasury Solutions Group, Germany
The updated rules for markets in financial instruments (MiFID II), agreed by the European Parliament and Council in January, will improve the capital markets function by increasing pre- and post-trade transparency, bringing real economic benefits.
Changes in MiFID II relating to the definition of derivatives and exemptions are most relevant to non-financial counterparties. In particular, participants in commodity derivative markets will suffer from narrowed exemptions. In addition, MiFID II introduces a position–limit regime for non-financial counterparties.