FESE Response to the Commission Consultation on the functioning of commodity derivatives market

FESE acknowledges that the regulatory frameworks for commodity derivatives—such as MiFID II, EMIR, and REMIT—have undergone recent reviews and, broadly speaking, are functioning as intended. FESE emphasises that no major overhaul of the regime is needed at this time. One of the areas for further improvement, instead, lies in enhancing collaboration and data-sharing between supervisory authorities, while being mindful of legal access rights and the principle of necessity.

FESE stresses a stepwise approach to reforms: beginning with better data access and sharing, before considering structural changes. This would avoid imposing unnecessary costs and complexity on market participants. FESE also highlights that duplicative reporting requirements currently exist and could be reduced through coordinated efforts and improved supervisory dialogue. However, any changes must be guided by a careful cost-benefit analysis, with strong respect for data confidentiality and cybersecurity concerns.