Energy derivatives meaning

In this issue: Commercial Competition Corporate Data protection and cybersecurity Free movement, immigration and employment Financial services Energy Environment Life sciences Regulatory TMT International trade Daily and weekly news alerts New and updated content Trackers Commercial Commission consults on evaluation of market surveillance regulation The European Commission has launched a consultation to assess and, if needed, update the Market Surveillance Regulation (EU) 2019/1020. It aims to strengthen the operation of the single market by boosting compliance with EU product harmonisation rules, with any amendments scheduled for Commission adoption in Q3 2026. The consultation closes on 4 February 2026. See: LNB News 12/11/2025 22. Commission consults on New Legislative Framework revision The Commission’s Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW H4) has opened a consultation to underpin the revamp of the New Legislative Framework (NLF) governing product law, seeking to capture stakeholder views on...

In this issue: UK, EU and international regulators and bodies Authorisation, approval and supervision Prudential requirements Financial stability Risk management and controls Financial crime and sanctions Consumer protection Investigations, enforcement and discipline PRIIPs Regulation of derivatives Banks and mutuals Sustainable finance and ESG Investment funds and asset management Consumer credit, mortgage and home finance Regulation of insurance Regulation of personal pension and stakeholder products Payment services and systems Spring Budget 2024 EEA Agreement Annex IX (Financial Services) Daily and weekly news alerts New and updated content Dates for your diary UK, EU and international regulators and bodies FCA sets out business plan for 2024–25 and outlines its approaches to supervision, consumers, international firms and competition The Financial Conduct Authority (FCA) has released its business plan for 2024–25—the concluding year of its three-year strategy aimed at delivering improved outcomes for consumers and...

In this issue Shipping finance Real estate finance Sustainable finance Debt capital markets Derivatives Structured products and securitisation Sanctions Daily and weekly news alerts New and updated content Useful information Shipping finance The armed conflict raging in Iran, together with the virtual halt of commercial movements through the Strait of Hormuz since early March 2026, has triggered an interruption to global shipping and energy trade with no clear precedent in the post-war period. This narrow corridor is a vital bottleneck in energy supply chains: around one-fifth of the world’s daily petroleum demand, and a similar share of traded liquefied natural gas, typically passes through it. Leading regional producers-including QatarEnergy, Kuwait Petroleum Corporation, Shell and Bapco-have already declared force majeure against their contract parties. The ripple effect is worldwide, leaving energy and commodities markets materially affected. See News Analysis: In Dire Straits-disruption, force majeure and the English Law disputes arising from the Iran conflict. ...

Position limits under Article 57 of MiFID II This Practice Note explains position limits under Article 57 of the recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II) and how they operate for commodity derivatives, or derivatives with a commodity as the underlying, in line with Commission Delegated Regulation (EU) 2022/1302 of 20 April 2022 (RTS 21a), as applicable. It also summarises the changes introduced by Directive 2021/338—including the expansion of available exemptions from position limits under Article 57—and the revisions made by Directive (EU) 2024/790 (the MiFID II Review) to obligations on position management controls; see Position management controls. The MiFID II Review, together with Regulation (EU) 2024/791 amending Regulation (EU) 600/2014 (the MiFIR Review), was published in the Official Journal of the EU on 8 March 2024. Member States must transpose the provisions of Directive (EU) 2024/790 into national law by 29 September 2025. For information about position reporting under MiFID II, see Practice Note: Position reporting under EU MiFID II. For information about the UK’s...

What doe this Practice Note cover? This Practice Note sets out guidance on how to use and read the opinions that evaluate the enforceability of close-out netting under the ISDA Master Agreement in multiple jurisdictions. It also explains how to assess whether a particular opinion can be relied upon for a given purpose, highlights the key legal assumptions and exclusions, and considers matters specific to individual jurisdictions, including insolvency regimes, multi-branch party elections and termination currencies. Background to ISDA The International Swaps and Derivatives Association (ISDA) represents over 850 member institutions in 67 countries, including banks, brokers, law firms and national bodies. Established in 1985, it acts as a trade body to promote a safe and efficient over-the-counter (OTC) derivatives market. ISDA operates in many OTC derivatives markets, including credit, equity, interest rate and energy derivatives. It has produced and maintained the ISDA Master Agreements and related documentation for documenting OTC derivative transactions, and also provides members with legal opinions on the enforceability of the ISDA Master...

This Practice Note outlines the principal features of Regulation (EU) 648/2012 (EU EMIR)... EU EMIR—Introduction Key requirements of EU EMIR The European Market Infrastructure Regulation (EU) 648/2012 (EU EMIR) is the core EU instrument supervising the over-the-counter (OTC) derivatives market. Its main components are: an obligation to clear standardised OTC derivatives through a central counterparty (CCP)—see Clearing obligation below an obligation to report derivatives contracts to a trade repository (TR)—see Trade reporting obligation below margin rules for OTC derivatives that are not centrally cleared—see Margin requirements below additional risk-reduction measures for uncleared trades, including prompt confirmation, portfolio reconciliation, portfolio compression and dispute resolution—see Additional risk mitigation requirements below Practice Note: UK Regulation of CCPs provides fuller detail on the CCP regulatory framework established under EU EMIR... EMIR level 2 and level 3 measures For an overview of the Commission’s adopted technical standards (TS), ESMA guidelines, and related consultations, final reports and technical advice, see Practice Note:...