Preparing for the UK’s new commodity derivatives regime: next steps for financial and non-financial firms

25/02/2025

On 5 February 2025, the UK Financial Conduct Authority (“FCA”) published a Policy Statement (PS25/1) setting out new rules for trading commodity derivatives. These new rules, which will come into effect on 6 July 2026, impact all UK market participants, regardless of their location. Key changes include the transfer of responsibility for position limits from the FCA to trading venues, modifications to exemptions and updates to trading venues’ position management controls and firms’ position reporting obligations. The FCA has also clarified the ancillary activities exemption for non-financial firms.

Firms have just under 18 months to familiarise themselves with the FCA’s new rules and guidance and to implement any necessary changes. To help you prepare for the new regime, we have set out further detail on the reforms and suggested next steps for financial and non-financial firms. Click here to access our brochure and ensure your firm is ready for the upcoming regulatory changes.