EU closer to deal on commodity speculation
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.
Britain, which has the EU’s largest financial services sector, led opposition to the limits on commodity speculation, and was supported by six other member states, including Sweden, Spain and the Netherlands.
As a result, the European Securities and Markets Authority, which regulates the sector, will determine a methodology on which national authorities will base their own trading limits. The compromise deal will now require the approval of finance ministers and MEPs before it can become law.
