EU closer to deal on commodity speculation

New EU proposals to crack down on commodity speculation were announced last week.

The so-called Market in Financial Instruments directive (MiFiD) will regulate financial markets across the EU, limiting financial positions in commodity derivatives, in a bid to prevent market distortions and abuse. Speculation in commodity markets has been blamed for volatility in important global crop prices, and a knock-on effect on food prices.

The rules have been in preparation since 2011, but there were more than 1,500 amendments from MEPs.