EC sides with big energy companies in Mifid II spat

Commission urges Esma to restore ‘capital employed’ test desired by industry

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European Commission rejects draft rules that riled energy industry

The European Commission (EC) has come down on the side of large energy and commodities companies in a dispute over whether such firms should be covered by the new Markets in Financial Instruments Directive, or Mifid II, Risk.net has learned.

In a March 14 letter, a top EC official urged the Paris-based European Securities and Markets Authority (Esma) to overhaul a key section of its draft Mifid II rules, called the ‘ancillary business test’, that determines whether non-financial firms that trade