Futures transaction (MiFID definitions)
European Union Electricity Market Glossary

 


 

 

‘Future’ is a contract to buy or sell a commodity or financial instrument in a designated future date at a price agreed upon at the initiation of the contract by the buyer and seller.

 

Every futures contract has standard terms that dictate the minimum quantity and quality that can be bought or sold, the smallest amount by which the price may change, delivery procedures, maturity date and other characteristics related to the contract.

 

The above definition of the future contract is stipulated in the Annex III to Commission Delegated Regulation (EU) 2017/583 of 14 July 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on transparency requirements for trading venues and investment firms in respect of bonds, structured finance products, emission allowances and derivatives (RTS 2)).

 

Futures transactions are also sometimes defined as standardised forward transactions that are traded on an exchange (see CESR/CEBS consultation paper on the MiFID commodities review (CESR/08-370)).

 

Futures should be differentiated from spot transactions.

 

 

 

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    Documentation    

 

 

Commission Delegated Regulation (EU) 2017/583 of 14 July 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on transparency requirements for trading venues and investment firms in respect of bonds, structured finance products, emission allowances and derivatives (RTS 2), Annex III

 

CESR/CEBS consultation paper on the MiFID commodities review, CESR/08-370

 

 

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Last Updated on Friday, 20 October 2017 22:57
 

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