Spain – CNMV Commodity Position Limit

On 26 December, CNMV issued position limit on commodity derivatives.

  • Maximum positions a holder can take in the derivative contracts on raw materials.
  • Using methodology in Chapter III of EU December 2016 position regulation.

CNMV Limits

  • Listed the maximum net position in warrants on commodities traded on exchange.
  • Gold, silver and Brent oil, as traded on the Stock Exchanges: 2.5 million warrants.
  • Wind power electricity contracts, from MEFF Exchange: is 60,000 Megawatt hours.
  • Electricity contracts for peak load from MEFF Exchange: 660,000 Megawatt hours.
  • Base load, next due date: 12.5 Terawatt hour; remaining maturities: 5.0 TW hour.

Germany – BaFin Post-Trade Transparency

On 22 December 2017, BaFin updated three general rulings to approve late publication.

  • The general injunctions will be supplemented with a deadline of 1 January 2019.
  • Affects the decrees allowing subsequent publication of transactions in non-equity/
    equity instruments in trading venues operated by investment services enterprise.
  • Authorized late publication of OTC non-equity instrument by investment. services.


  • BaFin will accept statements from 10:00 am on 2 January 2018.

E.U. – ESMA Transparency For MiFID

On 22 December, ESMA issued MiFID transparency for equity, bonds.

  • Updated MiFID transitional transparency calculations (TTC), for equity and bonds.

December 2017 Revisions

  • For change in classification of instruments, resubmission of data, by some venues.
  • New version should be used by participants, infrastructures from 3 January 2018.
  • MiFID require NCAs compute and publish transparency calculations of instruments.
  • Including providing transitional calculation prior to the date of application of MiFIR.
  • NCAs from EEA, except Poland, have delegated to ESMA, compilation of their TTC.
  • ESMA already provided TTC for non-equity instruments in September. 2017.
  • ESMA has performed these calculations with due care and to the best of its ability.
  • Given their complexity and data sources, future corrections of cannot be ruled out.
  • ESMA expected to continuously supplement and update information, as necessary.


  • TTC applied from 3 January 2018, equity TTC to 31March 2019, bonds to 15 May 2018.

Norway – NORFSA Mutual Funds, UCITS

On 20 December, NORFSA issued amended rules on UCITS mutual funds.

  • Ministry of Finance made changes to Securities Funds Act under UCITS V directive.


  • Changes concerned the remuneration scheme for senior executives in mutual fund
    management companies, depository receivers, calculation of penalties, for breach.
  • Rules currently do not contain provisions implementing Reg (EU) 2016/438 on the
    custodian’s duties, since it has not yet been incorporated into the EEA Agreement.
  • UCITS V Directive changes rules for mutual funds in 3 areas, applies to custodians,
    remuneration schemes for senior executives and others in mutual funds, sanctions.
  • Ministry of Finance will prescribe regulations implementing the rest of the UCITS V.


  • Amendments effective from 1 January 2018.

E.U. – ESMA Advises Short-Selling Rules

On 21 December, ESMA issued advice to EC on elements of short-sales.

  • Proposed amendments for controversial areas of short-selling regulation (SSR).
  • Aims to improve relevance, effectiveness, coherence, and efficiency of the SSR.
  • SSR lays down common regulatory framework for powers on short sales, CDS.
  • Aims to ensures greater coordination and consistency between Member States.
  • Enhance transparency, reduce certain risks, and common regulatory approach.

Market Making Exemption

  • Proposes will include addition of the different types of on-venue market making
    activities described in MiFID II within the definition of ‘market-making activities.
  • Market makers only need to be member or participants, of only one of the trade
    venues where market-making activity takes place, do not need for all of them.
  • Do not require any membership requirements, for OTC market-making activity.
  • ESMA also suggested introducing new reporting obligations for market makers.

Bans on Short-Selling

  • Recommended only authority of most relevant market to impose ban across EU.
  • Transform current short sale bans into entering or increasing net short positions.

Transparency of Short Positions

  • Improvements building a centralized notification and publication system for EU.
  • ESMA supported requiring the LEI, for identification of certain position holders.

E.U. – ESMA Commodity Limits FAQ

On 19 December, ESMA issued FAQs on commodity derivatives per MiFID.

  • ESMA also updated liquid commodity derivative contracts list, re limits.
  • List now include position limits, ESMA opinion in relation to ICE Brent Crude contract.
  • Position limits Q:15, on how spot month should be defined for contracts where there
    are daily, weekly, quarterly or calendar as well as monthly variants of same contract.
  • Spot month determination for the application of the spot month position limit should
    be made by NCA, on basis of contract specification, the characteristics of the market.
  • Position reporting Q:17 on who has to report to the trading venue, NCA where chain
    investment firms, that have to comply with commodity position reporting obligations.
  • Position reporting Q:18 on how investment firm clients should inform intermediaries
    of the nature of each of their positions (hedge or speculation), i.e. for each position?
  • Or should clients indicate all positions be deemed for hedging, non-hedging purpose?
  • Position reporting Q:19 on how the position quantity field is reported for the contract
    which relate to the delivery of the same underlying over the different periods of time.
  • Position quantity held in contract reported same unit used by CA to set position limit.
  • Position reporting Q:20 positions in daily or weekly contracts whose delivery period is
    completely included in spot month should be reported as spot month positions, SPOT.
  • Positions in weekly contract whose delivery period not completely included in the spot
    month, ie contracts that straddle months, reported as other months’ positions, OTHR.
  • Positions in quarterly and annual contracts whose delivery periods straddles the spot
    month, and other months, should also be reported as other months’ positions, OTHR.

E.U. – ESMA MiFID Post-Trading FAQ

On 14 December 2017, ESMA updated FAQs on the segregation level for indirect clearing.

  • If clearing member default impermissible for CCP to liquidate all collateral recorded
    in all gross omnibus indirect client accounts together apply resulting sum collectively.
  • So as to cover the losses or enable the netting of positions across different accounts.

Malta – MFSA Exchange Traded Funds

On 6 December, MFSA proposed rules on listing of exchange traded funds.

  • Encouraged foreign ETFs to list under the National Capital Markets Strategic Plan.
  • Also wished to enable the formation of local ETF listings, to develop liquid market.
  • Listing authority approved introduction of draft rules for listing of ETFs on market.
  • Invited feedback from parties, to analyze how ETFs will impact and risks involved.


  • Comments due by 12 January 2018.