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  1. Questions and Answers on MiFID II and MiFIR commodity derivatives topics (ESMA70-872942901-36) (updated 23 September 2022)
  2. 3 Ancillary activity [Last update: 23/09/2022]
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3 Ancillary activity [Last update: 23/09/2022]

Comparing proposed amendment...
Question 1 Do all legal entities that deal in commodity derivatives within a financial group need to be individually authorised as investment firms? [Last update: 19/12/2016]
Question 2 Does trading activity in C6 contracts which takes place on OTFs after 3 January 2018 need to be counted towards the ancillary thresholds prior to that date? [Last update: 19/12/2016]
Question 3 Can the parent undertaking notify its NCA for the whole group or do the subsidiary undertakings also have to notify their local NCA? [Last update: 23/09/2022]
Question 4 Who has to notify annually the relevant competent authority that they make use of the ancillary activity exemption? [Last update: 23/09/2022]
Question 5 To which competent authority should a person provide notification that it makes use of the ancillary activity exemption? [Last update: 23/09/2022]
Question 6 By when does a firm that wants to make use of the ancillary activity exemption need to notify its competent authority? [Last update: 23/09/2022]
Question 7 When does a firm that can no longer make use of the ancillary activity exemption need to apply for a license? [Last update: 23/09/2022]
Question 8 What are the criteria that liquidity provision contracts need to meet in order to qualify for the privileged transactions exemption? [Last update: 23/09/2022]
Question 9 Should the capital employed test be calculated only on the same positions as included in the trading market size test or for all commodity derivatives traded in the group? [Last update: 23/09/2022]
Question 10 Should the denominator in capital employed test under Article 5(4) of CDR 2021/1833 be calculated using consolidated accounts? Should firms use capital on a worldwide basis or just capital employed within the EU? [Last update: 23/09/2022]
Question 11 How should various underlyings falling under the C(10) category be treated for the purpose of ancillary activity calculations? [Last update: 23/09/2022]
Question 12 How shall transactions concluded on venues outside the EU be treated for the market size test computations under Article 2 of RTS 20? [Last update: 23/09/2022]
Question 13 How shall OTC transactions done by non-EU entities of an EU group with EU counterparties be counted for the market size test? [Last update: 02/10/2018] - deleted
Question 13 CDR 2021/1833 refers only to Article 360 of the CRR, while the 'simplified approach for calculating regulatory capital requirements' is contained in CRR Articles 357, 358 and 360. Is the text in CDR 2021/1833 self-contained or should firms refer to the whole of CRR? [Last update: 23/09/2022]
Question 14 Is a third-country firm (or a third-country subsidiary of an EU firm) dealing on an EU trading venue in commodity derivatives or emission allowances or derivatives thereof in scope of the Ancillary Activity test as per CDR 2021/1833? [Last update: 23/09/2022]
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