• GE BaFin said it has removed the majority of position limits on commodity derivatives.
• Follows EU February 2021, MiFID quick fix Dir 2021/338 on Covid recovery.
• Also follows GE GVT Jun. 2021 law implementing EU crowdfunding rules.

Key points

• Decision follows changes to MiFID II as part of EU capital markets recovery package.
• Position limit regime was adjusted, implemented in Germany by law on crowdfunding.
• Under WpHG s 54(1), position limits restricted to derivatives on agricultural products.
• And critical or significant commodity derivatives that have an open interest, i.e. sum of all open positions in one futures or options contracts of at least 300,000 tradable units.
• Therefore, position limits will still remain in effect for agricultural products and the Phelix DE Base commodity derivatives contracts of Leipzig Energy Exchange (EEX).
• GE BaFin said raw material certificates will be exempt from position limits in the future.

Effectiveness

• The revocation orders that announce the changes will become effective 28 November 2021.