Which types of firm fall within each of the ITS 4 categories for the purposes of the weekly Commitment of Trader (CoT) reports?

Answer 22

ITS 4 implementing MiFID II provides the format of the weekly reports (CoT reports) to be published by trading venues and provided to ESMA. In providing information to the trading venues to enable them to produce weekly reports, members and participants of those venues must use their knowledge and judgment to categorise their activities and the activities of their clients accurately.

In order to achieve accuracy and consistency in the reporting of positions across different categories, the following guidance may be of assistance:

EU entities:

- Investment firms or credit institutions - includes banks and other firms regulated under MiFID II.

- Investment funds - entities holding investments directly in the commodity derivatives market as a form of collective investment scheme, including hedge and exchange - traded funds.

- Other financial institutions - those financial firms not falling within any of the other categories including pension funds.

- Commercial undertakings - non-financial entities using commodity derivatives, for example firms using those markets to hedge the risk they directly incur from dealing in physical commodities such as producers, end users, processors, manufacturers, shippers and merchants.