The new standards that the European Commission is working on are aimed at regulating commodity markets and limiting speculation on them. The lack of proper regulation has led to the fact that some companies are too active in speculating in the commodity market.
The future package of measures will complement the existing MIFID regulations and will be adopted from January 3, 2018, so everyone will have time to prepare. Limits on positions that can be held by one trader will be determined. This will help limit speculation in the market, regulate the correctness of pricing and prevent speculative manipulation of raw materials.
Illiquid derivative contracts will also be regulated.
As for non-financial companies that actively trade in raw materials, they are already regulated by the MIFID Directive 2. Vladis Dombrovskis, President of the European Commission, has already commented that these measures will contribute to improving the efficiency of the market and help to cope with the problems that have arisen as a result of the financial crisis.
