On 24 March 2022, EU CMSN adopted the regulatory technical standards under directive 2014/65/EU on position management controls and began 3-month scrutiny period.

Overview

• The RTS includes procedure for position limit exemptions, methods to determine position limit and position management tool for trading venues.
• Under MIFID II Recovery Package, position limits will apply to agricultural commodity derivatives and to critical or significant commodity derivatives defined under Level 1.
• These are derivatives with net open interest above 300,000 lots over one-year period.
• As part of implementation of new framework, ESMA and national competent authorities have agreed on procedure to ensure the convergence in calculation of open interest.
• Also, determination of whether commodity derivative qualifies as critical or significant.