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===“...except for wholesale energy products traded on an OTF that must be physically settled”=== | ===“...except for wholesale energy products traded on an OTF that must be physically settled”=== | ||
This curious exception to the physically-settled commodity derivatives class in point (6) is known elsewhere as the “[[REMIT carve-out]]”, and is dealt with in some depth [https://emissions-euets.com/internal-electricity-market-glossary/652-remit-carve-out here] by our friends at {{plainlink|https://emissions-euets.com|Emissions-EUETS.com}} — an excellent site you must explore if you haven’t already. REMIT is Regulation No 1227/2011 on | This curious exception to the physically-settled commodity derivatives class in point (6) is known elsewhere as the “[[REMIT carve-out]]”, and is dealt with in some depth [https://emissions-euets.com/internal-electricity-market-glossary/652-remit-carve-out here] by our friends at {{plainlink|https://emissions-euets.com|Emissions-EUETS.com}} — an excellent site you must explore if you haven’t already. REMIT is Regulation No 1227/2011. Why “REMIT”? '''R'''egulation on wholesale '''E'''nergy '''M'''arkets '''I'''ntegrity and '''T'''ransparency, of course. | ||
In any case, but for that odd exception for wholesale gas and power traded on an OTF — which is a ''non''-non-discretionary venue not qualifying as a [[regulated market]] or an [[MTF]], so chapeau for the multi-dimensional negative there and note this is a very limited carve-out pertaining to wholesale participants in the gas and power industry — [[Exchange-traded products|exchange-traded]] commodity futures and options ''are'' in scope for MiFID, even where physically settled. Which we think makes sense: it would be arbitrary indeed to exclude a class of exchange-traded derivatives just because of their settlement method, when most of the “[[regulatey]]” things about them — the risk, the market infrastructure, the consumer protection requirements, the capital and solvency issues for clearers and settlers — are exactly the same. | In any case, but for that odd exception for wholesale gas and power traded on an OTF — which is a ''non''-non-discretionary venue not qualifying as a [[regulated market]] or an [[MTF]], so chapeau for the multi-dimensional negative there and note this is a very limited carve-out pertaining to wholesale participants in the gas and power industry — [[Exchange-traded products|exchange-traded]] commodity futures and options ''are'' in scope for MiFID, even where physically settled. Which we think makes sense: it would be arbitrary indeed to exclude a class of exchange-traded derivatives just because of their settlement method, when most of the “[[regulatey]]” things about them — the risk, the market infrastructure, the consumer protection requirements, the capital and solvency issues for clearers and settlers — are exactly the same. | ||