MiFID - Market in Financial Instruments Directive

The revision of the MiFID Directive covers all financial instruments, including agricultural derivative markets, Futures and OTCs (over-the-counter trades).

FEDIOL cooperates with other European associations and members of PFP to have forward trades for physical agricultural goods (including basis contracts for physical goods related to futures, such as rapeseed basis MATIF; or paper contracts, such as Fob Dutch Mill oil and Lower Rhine meal) traded under standard commodity contracts (such as FOSFA, GAFTA, NOFOTA, GROFOR, etc.) being excluded by DG FISMA from the financial instruments definition under MiFID.

FEDIOL further cooperates with other European associations to support ESMA (the EU Securities and Market Authority) in developing workable technical definitions on hedging (based on positions covering risk and not on the initially proposed transaction basis), preferably in line with the USA system; and on sufficiently large hedging exemption thresholds (depending on the hedging definition), in order not to have the bulk of the agricultural commodity operators being classified as financial operators; and on the commodity asset class definition for freight.

The points on hedging definition, hedging exemption thresholds and commodity asset class are explained in more detail in