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

Public Policy
Europe September 8, 2025
< 1  min.read

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.

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

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