MiFID - ESMA guidelines embedded in CSSF Circular 15/615
On 7 May 2015, the European Securities and Markets Authority (ESMA) published guidelines on the application of the definition of commodity derivatives and their classification under C6 and C7 of Annex I of the Markets in Financial Instruments Directive (MiFID).
In some Member States, the application of MiFID gave rise to different interpretations from the competent authorities regarding what should constitute a financial instrument and what should be classified as a derivative contract. This could lead to an inconsistent application of MiFID, but also of other Directives and Regulations that rely on MiFID like European Markets Infrastructure Regulation (EMIR).
These guidelines should ensure a common and consistent application of the definition of commodity derivatives and their classification under C6 and C7 listed in Section C of Annex I of MiFID.
Some of these guidelines are issued under Article 16 of the ESMA Regulation. In accordance with Article 16(3) of the ESMA Regulation competent authorities and financial market participants must make every effort to comply with guidelines and recommendations.
Competent authorities to whom the guidelines apply should comply by incorporating them into their supervisory practices. These guidelines apply from 7 August 2015.
CSSF Circular 15/615 published on 11 June 2015 intends to transpose these guidelines.