Food and drink companies use commodity derivatives for price discovery and hedging purposes against price risk of the underlying physical agricultural raw material. Derivatives and OTC markets enable food industries to manage their exposure to volatility in agricultural commodity markets in order to achieve business predictability. This is of particular importance considering that CAP reforms have introduced more market orientation in the agricultural sector.

FoodDrinkEurope welcomes the Commission proposals on MiFID/MiFIR2 which reached a good balance between more transparency and position management versus the need for well-functioning and liquid markets. In particular, FoodDrinkEurope supports the following measures of the MiFIR/MiFID2 proposals:

To read the full position, click here. 

Download the position paper