Copa and Cogeca welcomed a European Parliament vote on new rules on financial markets (MiFID II ) saying that it represents a victory for common sense as it will allow markets to function properly at the same time as enabling producers to hedge against the increasingly volatile agricultural markets.
The new rules apply to all market operators, such as stock exchanges or other trading platforms, banks, investment companies and funds or other service providers related to financial products and aim to prevent excessive speculation. The requirements relate to transparency and investor protection obligations.
Copa and Cogeca support the objectives of MiFID II in order to increase transparency on the financial markets and to have more responsible operators on the markets.
Reacting to the vote, Copa and Cogeca Secretary-General Pekka Pesonen said “We welcome this vote from European Parliament today. With farmers up against increasingly volatile markets and with the Common Agricultural Policy (CAP) becoming more market orientated, futures markets play an essential role for farmers to hedge against price volatility and to stay afloat”.
“The vote by MEPs will allow the market to function properly and enable new contracts to be developed in sectors which are becoming less regulated and open to market forces, notably the EU sugar and dairy sectors. The result represents a victory for common sense as it will allow markets to function and enable all participants to manage their exposure to price volatility. We have worked closely with the European Commission to ensure that farmers and agri-cooperatives were taken into account” he concluded.