November 29, 2017

BaFin published the list of indicative position limits for commodity derivatives under the second Markets in Financial Instruments Directive (MiFID II). BaFin is the competent authority for all commodity derivatives contracts that are traded on a German market place, as well as economically equivalent bilateral counter derivatives (OTC derivatives). It determines the position limits and monitors their compliance.

Commodity derivatives can be subdivided into liquid and illiquid contracts. BaFin determines individual position limits on cash contracts based on the characteristics of the market. For illiquid contracts, however, a standard limit of 2,500 tradable units or 2.5 million securities applies. To provide market participants with guidance in preparing for the future position limit regime, BaFin has published a list of currently contemplated position limits for liquid contracts. The content of the list is not binding and can change at any time. BaFin will publish the position limits on January 03, 2018 by general order. This will take effect the next day.

As part of the implementation of MiFID II, position limits on commodity derivatives will be introduced as of January 03, 2018; this implies that there will be upper limits for holding derivatives whose underlying is a commodity. Neither individual companies nor corporate groups are allowed to consolidate positions that, in aggregate, exceed these thresholds.

 

Related Links (in German)

Effective Date: January 04, 2017

​Keywords: Europe, Germany, MiFID II, Position Limits, Commodity Derivatives, BaFin

Related Articles
News

FSB to Evaluate Effects of Too-Big-To-Fail Reforms for Systemic Banks

FSB is seeking feedback as part of its evaluation of the effects of the too-big-to-fail reforms for banks.

May 23, 2019 WebPage Regulatory News
News

APRA Releases Minor Changes to Reporting Standards on SA-CCR for Banks

APRA released minor changes to the three reporting standards for the standardized approach for measuring counterparty credit risk exposures (SA-CCR).

May 22, 2019 WebPage Regulatory News
News

APRA on Industry Self-Assessments into Governance and Accountability

APRA released an information paper analyzing the self-assessments performed by 36 of the country’s largest banks, insurers, and superannuation licensees in response to the final report on the Prudential Inquiry into the Commonwealth Bank of Australia (CBA).

May 22, 2019 WebPage Regulatory News
News

PRA Consults on Maintenance of TMTP Under Solvency II

PRA published a consultation paper (CP11/19) that sets out its approach to update supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTP) under Solvency II.

May 22, 2019 WebPage Regulatory News
News

APRA Proposes to Amend Guidance on Residential Mortgage Lending

APRA is consulting on revisions to the prudential practice guide APG 223 on residential mortgage lending in Australia.

May 21, 2019 WebPage Regulatory News
News

IASB Proposes Improvements to IFRS 9 and IFRS 16

IASB published the exposure draft ED 2019/2 that proposes amendments to four IFRS standards, including IFRS 9 on Financial Instruments and IFRS 16 on Leases.

May 21, 2019 WebPage Regulatory News
News

Denis Beau of BDF on Supervisory Priorities for Climate-Change Risks

Denis Beau, the First Deputy Governor of BDF, delivered opening remarks at the BCBS-BSCEE-FSI High-level Meeting for Europe on banking supervision.

May 21, 2019 WebPage Regulatory News
News

ISDA CDM to be Deployed for UK Digital Regulatory Reporting Pilot

ISDA announced deployment of the ISDA Common Domain Model (ISDA CDM 2.0) to support the UK FCA, BoE, and participating financial institutions in testing phase two of the Digital Regulatory Reporting pilot for derivatives.

May 21, 2019 WebPage Regulatory News
News

MAS to Consolidate Regulation of Merchant Banks Under Banking Act

MAS published a consultation paper that proposes to consolidate the regulation of merchant banks under the Banking Act and to move merchant banks to a licensing regime under the MAS Act.

May 21, 2019 WebPage Regulatory News
News

ESAs Amend Technical Standards on Mapping of ECAIs Under CRR

ESAs published a second amendment to the implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk under the Capital Requirements Regulation (CRR).

May 20, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3118