Impact of the MIFID II Regulation Package on the Functioning of the Gas Market

MIFID II and the amendment to the Act on Trading in Financial Instruments implementing this directive will significantly strengthen the impact of financial market regulation on the functioning of the gas market, causing, among others, a change in the structure and principles of gas exchange. The main objectives of MIFID II are to create an integrated financial market, to provide better protection for investors, to increase the level of trust and to ensure that financial supervisory authorities have the powers to effectively perform their responsibilities.

The directive has a serious impact on the continued functioning of the gas market by significantly extending the scope of contracts entered into on the gas market that may be classified as financial instruments and by introducing a new trading system – an organized trading facility (OTF).

An article by W&W’s Tomasz Brzeziński and Adam Wawrzynowicz titled, “The Impact of the MIFID II Regulation Package on the Functioning of the Gas Market”, as published in Przegląd Gazociągi nr 2 (58), indicates which contracts on the gas market can be classified as financial instruments and discusses changes in the gas exchange operation rules in connection with the implementation of MIFID II.