CMCE’s advocacy and lobbying activities are directed by its membership and focused on the regulation of commodity derivative markets and participants in these markets. Within this regulation CMCE has prioritised (a) requirements for non-financial counterparties entering into over-the-counter (OTC) derivative contracts, (b) the extension of market abuse rules to spot commodity and commodity derivative transactions, (c) changes to the main regulatory regime for securities and derivatives markets, (d) regulation applicable to commodity benchmarks, (e) regulatory capital rules applicable to commercial market participants, and (f) the implication for commodities trading markets of the United Kingdom’s exit from the European Union.

Across this regulation CMCE has also worked to ensure the consistency between key jurisdictions, particularly the European Union and the United States and Canada.

Much of the applicable primary legislation has now been adopted. CMCE’s focus for now has turned to the implementation process. It is working with policy makers, European and national regulators to:

  • Promote adoption of harmonised regulatory guidance for the implementation of key MiFID II provisions for commodity derivatives markets participants.
  • Devise proportionate prudential regime for commodity dealers as per mandate under the EU’s Capital Requirements Regulation (CRR).
  • Promote and protect regulatory recognition of key foreign trading venues on which members trade commodity derivative contracts.
  • Support appropriate rules for the production and use of key commodity benchmarks and indices, which underlie commodity transactions worldwide.