- ESMA opinions agreed position limit re feed wheat; jet kerosene; and gasoline.
- Found proposed limits consistent with objectives of MiFID II, and methodology.
- ESMA will continue to assess notifications received and issue opinions on them.
- To ensure the position limits are set in accordance with the MiFID II framework.
- MiFID II requires that all commodity derivatives traded on trade venues as well
as economically equivalent OTC contracts, must be subjected to a position limit.
- NCAs have to establish position limit with methodology for calculation by ESMA
- For illiquid contracts, spot and other months’ limits are set by default in RTS 21
and amount to 2,500 lots, or 2.5mn securities issued for securitized derivatives.
- Liquid contracts will be given bespoke position limits, set by the relevant NCAs.