A Consultation on Foreign Exchange (FX) instruments targeted towards firms that are active in the trading of FX spot and derivative contracts has been issued by the European Commission (EC) on 10th April 2014.
Such Consultation’s objective stems from various particular concerns raised in relation to the lack of harmonisation between the respective EU Member States on where the boundary lies between what is deemed to be an FX financial instrument and a Spot FX contract. The EC is now seeking to obtain stakeholders’ feedback on the boundary that should be set in this respect.
This Consultation is limited in scope with the purpose of ultimately achieving clarity on this delineation whilst ensuring that there is clear, adequate and consistent application of the relevant financial regulation across all EU jurisdictions.
The Consultation document may be accessed via the following link.