Joint Response to FCA Consultation on Ancillary Activities Test for Commodity Derivatives Trading

On August 28, ISDA and FIA submitted a joint response to the Financial Conduct Authority’s (FCA) consultation paper CP25/19 on the ancillary activities test to determine if commercial users or producers of commodities that trade in commodity derivatives, emission allowances or derivatives of emission allowances can benefit from the ancillary activities exemption from the need to seek authorization as an investment firm.

A key concern in the consultation paper was a proposal to include trading venue activity in the de minimis (annual threshold) test. ISDA and FIA argued strongly against this proposal, on the grounds it could diminish the international competitiveness of the UK commodity derivatives market, would add complexity and burden to firms applying the test and risks changing the outcome of the test, which the FCA stated was not the intention.

Documents (1) for Joint Response to FCA Consultation on Ancillary Activities Test for Commodity Derivatives Trading

A Path to Greater CFTC-SEC Alignment

Earlier this week, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) held a roundtable on regulatory harmonization – an initiative we wholeheartedly support. The US regulatory framework has evolved over time to facilitate financial markets...

Working Towards Tokenized Collateral

One of the lessons learned from recent market shocks – including the 2020 dash for cash and the UK gilt market crisis in 2022 – is that when volatility strikes and market participants must suddenly generate large amounts of cash...

IQ Interview Yazeed Alnafjan

ISDA published new legal opinions in June that recognise the enforceability of close-out netting in Saudi Arabia under regulations published by the Saudi Central Bank earlier this year. In this interview with IQ, Yazeed Alnafjan, the central bank’s deputy governor...