E.U. – ESMA Commodity Derivatives Position Limits

E.U. – ESMA Commodity Derivatives Position Limits

On 5 November 2019, EU ESMA launched consultation paper on position limits and position management in commodity derivatives and proposed legal framework changes.

  • Proposes that only key commodity derivatives contracts be subject to position limits.
  • And introduction of a limited position limit exemption for financial counterparties.
  • Enhanced convergence in trading venue position management regime implementation.
  • Is also proposing to amend the quantitative thresholds that trigger trading venues' publication of weekly position reports for more transparency in commodity derivatives.
  • The deadline for comments is 8 January 2020; ESMA will then draft its final associated report to EC CMSN and finalize the technical advice on weekly position reports.
  • The intention is that ESMA completes these two workstreams by end-March 2020