MiFIR - Risk Reducing Commodity Derivatives Transactions

When reporting transactions in commodity derivatives for purposes of MiFIR, Interactive Brokers will have to specify whether the transaction reduces risk in an objectively measurable way in accordance with Article 57 of Directive 2014/65/EU (“Art 57”).

Interactive Brokers will allow such transactions only from accounts held by entities that are non-financial entities using the account for trades in commodity derivatives that are intended to objectively reduce risk directly relating to their commercial activity in accordance with Art 57. (e.g. company that produces wheat that trades in such derivatives to hedge its commercial activity).
 
Account holders that make such a declaration in the Trading Permission section of their Account Management, agree that all transactions executed in commodity derivatives for that account will be executed for reducing the risk under Art 57, and Interactive Brokers will report the relevant transactions accordingly.