For markets

AWe supervise online certain firms and market operators active in commodity derivative markets. Our work is based closely with our regulatory counterparts overseas and with physical market authorities such as Ofgem.

The regulatory counterparts play a leading role in developing commodities policy and regulation globally through IOSCO and within Europe through ESMA.

The scope of Counterparts overseas regulation

The regulatory counterparts use the term ‘commodity markets’ to mean both the financial commodity derivative markets that thay regulate and the underlying physical market, which thay do not regulate. Thay use ‘commodity derivative’ and ‘physical’ when thay specifically mean these.

Commodity derivatives have been within the scope of UK regulation:

  • futures (which, for these purposes, includes some physical forwards and does not relate exclusively to exchange-traded products)

  • contracts for difference, and

  • options on financial instruments (as well as currencies and precious metals)

  • The Financial Services and Markets Act 2000 (FSMA) did not materially change the scope of commodity market instruments covered under UK regulation.

    EU regulation

    The Markets in Financial Instruments Directive (MiFID), which came into effect in November 2007, brought commodity derivatives within the scope of EU financial services legislation for the first time.
    There is some overlap between the MiFID and FSMA scope but they are not identical. FSMA is more comprehensive in capturing firms under a domestic regime that are not within MiFID scope.

    Contact Us

    google embedded


    Canary Wharf, London E14 5AB, United Kingdom

    GX3J+X5 London, United Kingdom

    For Firms

    For Customers

    Latest News

    MR Court finds Dover Financial Advisers Pty Ltd made false, misleading or deceptive statements in Client Protection Policy, and director knowingly concerned

    The Federal Court of Australia has found Dover Financial Advisers Pty Ltd (Dover) engaged in false, misleading or deceptive conduct. The conduct in question involved


    MR Perth financial adviser banned for five years

    ASIC has banned financial adviser Peter Jianchao Xu from providing financial services for five years following a surveillance of Mr Xu’s advice. Mr Xu was


    Connaught Independent Review call for information closes but investigation remains open to affected individuals

    Raj Parker, the Independent Reviewer into the FSA/FCA’s approach to the Connaught Income Fund Series 1, announces that the Review’s initial call for information has


    FCA fines Henderson £1.9m for fund failings

    The Financial Conduct Authority (FCA) has fined Henderson Investment Funds Limited (HIFL) £1,867,900 for failing to treat fairly more than 4,500 retail investors in two


    FCA to ban promotion of speculative mini-bonds to retail consumers

    Ahead of the upcoming Individual Savings Account (ISA) season, the FCA is introducing the restriction without consultation, using its product intervention powers. The restriction will come