In this act Article 21 of 23
Article 21 — Characteristics of the underlying commodity market
Financial servicesLevel 2RTSMiFID IIIn forceOfficial source
21(1)Copy link
1.Competent authorities shall take into account how the characteristics of the underlying commodity market impact on the functioning and trading of the commodity derivative and on the size of the positions held by market participants, including having regard to the ease and speed of access which market participants have to the underlying commodity.
21(2)Copy link
2.The assessment of the underlying commodity market referred to in paragraph 1 shall take into account the following criteria:
21(2)(a)
(a)whether there are restrictions on the supply of the commodity, including the perishability of the deliverable commodity;
Copy link21(2)(b)
(b)the method of transportation and delivery of the physical commodity, including the following:
Copy link21(2)(c)
(c)the structure, organisation and the operation of the market, including the seasonality present in extractive and agricultural commodity markets whereby physical supply fluctuates over the calendar year;
Copy link21(2)(d)
(d)the composition and role of market participants in the underlying commodity market, including consideration of the number of market participants which provide specific services that enable the functioning of the underlying commodity market such as risk management, delivery, storage, or settlement services;
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