ESMA has published its 2024 work programme (click here). There are a number of energy and commodity related focus areas for which we provide a summary below.
MiFID II/MiFIR
- Emission Allowances. ESMA may be mandated to provide input into the area of commodity derivatives and derivatives on emission allowances.
- Cooperation with ACER. ESMA will notably focus on developments in commodity derivative markets, including energy commodity markets in cooperation with the Agency for the Cooperation of Energy Regulators (ACER). ESMA’s work programme is affected by the uncertainty on the length and amplitude of the market stress linked to Russia’s invasion of Ukraine and the potential extension of Regulation (EU) 2022/2578 establishing a market correction mechanism beyond 31 January 2024.
- Commodity Investment Firm Status. ESMA will respond to the Commission’s call for advice on the commodity market structure and the profile of energy firms operating in these markets for the purpose of the reports on the prudential requirements applicable to investment firms to be delivered by the Commission to the European Parliament and the Council.
- Emissions Trading Scheme. As mandated by the new Emission Trading System Directive which applies from 1 January 2024, ESMA will regularly monitor the integrity and transparency of the European carbon market and, where necessary, make recommendations in its assessments to the European Parliament, the Council and the Commission.
EMIR
- EMIR 3. ESMA expects the EMIR 3 legislative proposal by the European Commission to result in additional regulatory and supervisory convergence work for ESMA such as technical advice and/or guidance and draft technical standards.
- Clearing Thresholds. ESMA will monitor the appropriateness and proportionality of the clearing thresholds and might amend them depending on market developments or following a possible change in the calculation framework.
Market Integrity
- Algorithmic Trading. ESMA will liaise with National Competent Authorities to better understand trends and developments connected to algorithmic trading and the relevant implications for market surveillance.