Tue, May 5, 2020

Update of Position Limits for Certain Commodity Derivative Contracts

The FCA has published updated position limits, established under the Markets in Financial Instruments Regulations 2017, for certain commodity derivative contracts traded on UK trading venues. 

These changes are now applicable and reflect changing market conditions. In these circumstances, a 2,500 lot limit could impair market functioning or growth in the contracts in ways which MiFID II seeks to avoid; a limit will therefore be announced in due course. The FCA will give two months' notice before such limits are applied.

These limits are published in advance of the publication of ESMA Opinions on the limits. These limits may change in light of an ESMA opinion, or in the event that the FCA decide it is required. 

This link specifies the affected contracts and the revised limits, and provides details of the commodity derivative contracts and the limits set on positions in them.


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