On 9 July 2021, the HM Treasury issued a consultation on its wholesale markets review, this included specific proposals to reform the MiFID commodity derivatives position limits regime. Consultation proposes changes that would limit the scope of position limits to agricultural contracts and physically settled contracts, FCA supports these proposals. FCA states while change being…
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U.S. – ICE Fines Investment Bank for Futures Position Limit Breach
On 8 June 2021, ICE FEU issued a fine for crude futures position limit breach ICE FEU issued a summary enforcement disciplinary measure against Goldman Sachs for a breach of ICE FEU Exchange Rule P.3 on WTI crude futures position limits. Alleged Violations On 14 January 2021, Goldman held a long position of 3,450 lots…
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U.S. – CBOE Increase Options Position Limits
On 4 May 2021, Cboe increased position limits for options on certain ETFs. The exchange proposed to increase position limits for options on certain exchange-traded funds and an exchange-traded note, GLD, SLV, LQD, GDX, VXX and UVXY. Background The exchange has observed an ongoing increase in demand, for both trading and hedging purposes, in options…
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E.U. – ESMA Position Limits Supervision
On 19 March 2021, ESMA clarified application of commodity position limits. ESMA policy statement clarified application of position limits pending MiFID II change. Follows EP and EU CNCL Dec. 2021 Dir 2021/338 amending MIFID II. Overview Statement aimed to clarify application of position limits, coordinate supervisory actions of national competent authorities (NCAs), pending legislative change…
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E.U. – ESMA Opinions on Position Limits
On 8 March 2021, ESMA issued six positive opinions on position limits. ESMA issued six opinions dated 24 February 2021, on position limits under under MIFID II. Follows ESMA February 2021 delegation of powers re opinions to chair. Re MEFFPOWER baseload contracts, PXE Czech financial baseload contracts, OMIP SPEL base contracts, plus EEX Italian, EEX…
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ESMA Opinions On Position Limits
On 17 February 2021, ESMA issued decision on delegation of powers re opinions. ESMA board of supervisors issued decision of 27 January 2021 on delegation of powers to its Chair for adoption of non-controversial opinions on position limits under MIFID II. Overview Art 57(5) of MIFID II requires competent authority to notify ESMA of the…
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