London, 20 September 2010

The European Commission intends use its plan on financial reforms to make several changes in EU regulation to tighten its controls on commodities markets, an official told Reuters on Monday.

The European Commissioner in charge of financial reform services Michel Barnier was due to make the announcement later in the day at a conference along with his agriculture counterpart Dacian Ciolos.

"The revision of MiFID (Market in Financial Instruments Directive) is one of the key elements of an ambition reform of the raw materials markets," the draft speech said.

"We will not improve the functioning of these markets without addressing both aspects relating to the underlying commodities and the financial instruments and markets which all play a significant role in the price evolution," it added.

The EU's executive had unveiled a blueprint on Wednesday to curb or ban short-selling and tighten controls on derivatives in one of its most ambitious financial reforms since the economic crisis unfolded, but Barnier was expected to give more details on its objectives concerning speculation on commodities markets.

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Source: Reuters - for Commodities Now.