On September 24, ISDA & FOA responded to the European Commission (MT Fabregas Fernandez), to the Rapporteur at the Parliament (M. Ferber) & to the Lithuanian presidency and to key Council members regarding MiFID – Article 59 – Position limits and position management controls: Definition of the hedging exemption.

This paper to aims to ensure that:1) the definition of the hedging exemption benefits all market participants and does not discriminate between financial and non-financial firms;

2) the hedging purpose of the transaction is subject to further clarifications by ESMA.