E.U. – ESMA Commodity Limits FAQ Updated

On 27 March 2018, ESMA updated its FAQs on commodity derivatives under MiFID II.

  • FAQ on position limits clarified circumstances under which less liquid contracts may
    receive bespoke limits, established by relevant national competent authority (NCA).
  • With a new approach to development and application of limits for spread contracts.
  • The spread positions are disaggregated, and the subsequent individual constituent
    positions were then added to the relevant overall position for the relevant contract.
  • FAQ on position reporting clarifies to which NCA positions in OTC derivative contract,
    which is economically equivalent to more than one ETD contract, must be reported.
  • When ETD contracts are not the same contract as defined in Article 5(1) of RTS 21.

Canada – IIROC Short Position Calculation

On 22 March, IIROC issued guidance on short position calculation.

  • Participants, Access Persons must file short position reports, per UMIR 10.10.
  • Follows IIROC Dec. 2017 notice on calculation and reporting of short position.
  • Calculate and file report of short positions in each listed and quoted security.
  • Report as of the 15th day, and the last day of each month, (calculation date).
  • Process to file short position report with IIROC, and the expectations on filing.

Aggregate Reporting

  • Report aggregate short position of security from holding in separate account,
  • Calculate short position from each account separately; and not net positions
    from more than one account even where accounts for same beneficial owner.
  • Inclusion of odd-lot short positions, in calculation of reported short positions.
  • Calculate short positions using settlement date positions, (not on trade date).

Convertible Securities

  • A short position in a listed or quoted security which is covered by the holding
    of a convertible or exchangeable security, is still considered as short position.
  • This short position must be reported until the convertible has been tendered,
    or account holder has issued irrevocable instructions to convert or exchange.


  • Effective date of guidance for short position reporting is November 30, 2018.