EU capital rules for energy traders not as bad as feared – PwC
Commodity trading firms can slash Mifid II capital charges by 40% through optimisation of derivatives portfolios and application of new Basel rules, report finds
The impact of the European Union's reworked Markets in Financial Instruments Directive (Mifid II) on energy firms will not be as cataclysmic as market participants now think, a new report from New York-based consultancy PwC suggests.
EU energy companies have been up in arms over Mifid II, which could hit them with bank-like capital charges for trading derivatives. The charges could run into billions of dollars for larger firms and force many participants out of commodity derivatives markets
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