On 7 December 2020, UK FCA updated position limits for commodity derivative contracts.

• Limits established under markets financial instruments regulations 2017 (MIFI regs).
• Limits revised in line with RTS 21, states they should be reviewed when there is major change in open interest, deliverable supply, other significant change in market.
• Changes reflect changing market conditions, means continued use of a 2,500 lot limit could impair market functioning or growth in ways which MiFID II seeks to avoid.
• And a limit will be announced in due course when market changes have stabilized.
• Where limits are to be announced (TBA), UK FCA will give 2 months’ notice before any revised limits come into force, so market participants can adjust trading strategies.
• UK FCA published a table setting out the affected contracts and the revised limits.
• The temporary suspension of limits (TFU and UKD) will apply immediately.
• WIM is a new contract being launched on 7 December 2020, so there is no previous limit.