FCA consults on reforming commodity derivatives regulation

FCA is consulting on proposed changes to:

• position limits and exemptions;
• position management controls;
• reporting; and
• the ancillary activities test

in relation to commodity derivatives. FSMA 2023 has given FCA rulemaking powers under RIEs and to establish how trading venues should set and apply position limits and position management controls. Treasury has also amended the ancillary activities test framework. FCA has proposed consequential changes to the Glossary, MAR, DEPP, REC and PERG.

Consultation closes on 16 February 2024.