October 24, 2017

ESMA published nine opinions on position limits regarding commodity derivatives under the Markets in Financial Instruments Directive and Regulation (MiFID II/MIFIR). ESMA also published a list of liquid contracts that will receive a bespoke position limit and it will continue to assess the notifications received and issue opinions to ensure that the position limits are set in accordance with the MiFID II framework.

The position limits concern contracts on London cocoa, robusta coffee, white sugar, aluminum, copper, lead, nickel, tin, and zinc. ESMA opinions agree with nine position limits proposed by the Financial Conduct Authority (FCA). ESMA found that the proposed position limits by FCA are consistent with the objectives established in MiFID II and with the methodology developed for setting those limits.

As of January 03, 2018 and MiFID II application, limits will apply to the net position a person can hold in commodity derivative contracts. National competent authorities have to set position limits for commodity derivatives and notify ESMA of the specific position limits they plan to introduce for liquid contracts.


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Keywords: Europe, EU, Securities, MiFID II, MiFIR, Position Limits, FCA, ESMA