Brussels, 20/12/2013 (Agence Europe) - It was not possible on Wednesday 18 December to reach a political agreement on reform of the market in financial instruments (revising the MiFID directive 2004/39/EC) so the question will be carried forward into 2014 with a slim chance that agreement will be reached next month. The main stumbling block in the inter-institutional negotiations was the scope of application, particularly commodities derivatives. The Presidency was hoping a derogation would be issued for contracts in energy, like oil, gas, electricity and coal, but the Commission says this was too broad and went beyond what was laid down in the directive on transparency in the gas and electricity markets (the REMIT directive). This would also mean that contracts for oil and coal would no longer be covered by market abuse rules. With a view to a compromise, the Commission could go along with narrower derogations for derivative contracts for goal and oil, so there are no loopholes in the EU's rules. The European Parliament discussed this, but rejected the Lithuanian Presidency's idea. The question has been left hanging and talks will continue at a new trialogue meeting in January.
Agreement on MiFID II is expected to come about during the Greek Presidency. Agreement has already been reached on non-discriminatory access to trading income, giving greater powers to the European Securities Markets Authority (ESMA) and systems applying to non-EU countries. (MD/transl.fl)