ISDA: Industry warns against inappropriate regulation of Commodity Derivatives

20 June 2007

The Commodity Derivatives Working Group (CDWG) warned that any new public policy on commodity derivatives must not stifle competition and liquidity in the industry. The CDWG was responding to a consultative document by the Commission on regulation for commodity firms that trade in commodity derivatives. The MiFID Directive and the Capital Requirements Directive include temporary exemptions for these firms, pending the current review.

“Banks and commodity firms agree that regulators must proceed cautiously to ensure a suitable, proportionate regime for participants at this critical stage of the commodity derivatives market’s development. The net effect will be more efficient price formation and lower levels of financial risk,” said Robert Pickel, Executive Director and Chief Executive Officer, ISDA.

Press release

© ISDA - International Swaps and Derivatives Association