Germany – BaFin Derivative Position Limits

Germany – BaFin Derivative Position Limits

On 25 November 2021, GE BaFin removed limits on commodity derivatives.

  • 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.