On 10 August, EU ESMA issued first MiFID II commodity position limit.

  • ESMA agreed with proposed commodity derivative position limits from French AMF.
  • Limits for rapeseed; corn; and milling wheat, consistent with objectives in MiFID II.
  • In line with the methodology developed for setting those limits for liquid contracts.
  • As of 3 January 2018 and MiFID II application, limits will apply to the net positions.
  • NCAs have to set position limits for commodity derivatives and notify ESMA of them.

Rapeseed Limits

  • MATIF/Euronext contract covers rapeseed from any origin, that can deliver into EU.
  • Spot month definition includes 90 calendar days with the limit split into two periods.
  • AMF set spot month limit of first 78 days at 25,000 lots, (20.2% deliverable supply).
  • Over last 12 trading sessions before expiry, limit decreases to 7,000 lots, (or 5.7%).
  • Open interest amounts to 77,800 lots, based on daily average of 2016 issued by TR.
  • Other month limit: split into two periods: 21 days before expiry; and the remainder.
  • In 21 days before expiry of spot month, limit is 25,000 lots (32% of open interest).
  • For rest of other months’, the position limit is 20,000 lots, (25.7% of open interest).