ESMA clarifies reporting and clearing of commodity trades

Due to different opinions and interpretations in some of the EU Member States ESMA has released guidelines to clarify e.g. the reporting obligations regarding commodity trades. One of the key statements of this guideline:

'9. A Regulation that is directly applicable in all the Member States cannot be applied differently as a result of different national interpretations of definitions included in a Directive. This is contrary to the spirit and objectives of the Regulation.'

This statement also indirectly emphasizes the fact, that there should not be different interpretations regarding other derivatives (e.g. FX forwards and swaps) as well.

The guideline will come into force on August 7, 2015 and applies to the NCAs (National Competent Authorities).