New Rulebook at Fish Pool from January 3rd 2018

From Jan 3rd 2018 the EU regulation MiFID II enters into force.  MiFID = Markets in Financial Instruments Directive

Fish Pool has thus an updated Rulebook. Short info about main aim of MiFID II and consequences for our Trade members:

  1. Trading at exchanges to avoid counterpart risks and “domino effects” if market participants go bankrupt.  Fish Pool operates cleared future contracts, thus fulfilling this aim.  Bilateral contracts with known counterparts will not be possible any more.  Appendix 4 is thus deleted.
  2. Transparent costs of trading.  No change. Fish Pool has always been transparent and treats all Trade members equally
  3. Full pre- and post-trade transparency.  No change:  www.salmonprice.com has always given open information about buy and sell orders. Price and volume in all contracts has also been transparent and open information
  4. Best execution.  All orders must be on-screen. Off-screen orders are no longer possible so that all Trade members can be sure of having access to best price and execution
  5. Restrict access to exchange:  Investment firms with a license and companies that use Fish Pool contracts as ancillary (an addition) to their main business can be members. All existing Trade members may thus continue, given that they notify local authorities during Q1 each year. We will give you more info and help here. Companies having as only activity to trade Fish Pool contracts will not have access
  6. Documentation and reporting of trades.  All companies must be identified with LEI – Legal Entity Identifier – and each trader with personal ID. Fish Pool will report on behalf of all trade members to a central European register
  7. Control of purpose of hedge and dominant positions.  Financial authorities will set maximum positions for companies that are not hedging. Our trade members must inform if trades are for Hedging or non-hedging purpose. Largest group of Trade members have had on average only 13% of total traded volume at Fish Pool latest 4 years, and all trades are mainly hedging. We do not expect any practical consequence here

Conclusion:  We do not expect our trade members to notice any great change or practical consequence of the new MiFID II rules.  See own email from Vibeke for LEI etc.

Fees for Trading.  Trading fee is unchanged at 0,10 NOK/kg. There are still no fixed costs of being Fish Pool members, only variable trading fees. Fee discounts is changed, still 0,07 NOK/kg for trading more than 20.000 tons. The discount for trading more than 10.000 tons has been removed. Clearing fees are also unchanged, updated fee – list for 2018 is available on www.fishpool.eu

The total Rulebook has been updated and clarified.  The chapters of Trade errors and liabilities have been rewritten to clarify the Fish Pool responsibility.

Fish Pool Rulebook from January 3rd 2018:

Agreements for trading at Fish Pool ASA

Trade membership agreement

Non-Clearing membership agreement

Financial Institutions Trade Membship Agreement

Broker membership agreement

Rulebook and appendices:

Rulebook 5.1

Appendix 1 Product specifications

Appendix 2 Fish Pool Index

Appendix 3 Fee list 2018

Appendix 5 ETS-agreement

Appendix 5-2 App til ETS

Appendix 6 Market Conduct Rules

Appendix 7 Etiske regler

Appendix 8 Options

Appendix 9 Market Maker Agreement

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