MiFID II Position Limits

Of relevance to: Any firm with positions in commodity derivative contracts
Key date: Applicable from 3 January 2018

The European Securities and Markets Authority (ESMA) has published nine opinions agreeing MiFID II position limits proposed by the FCA for the net position that can be held in commodity derivatives contracts involving London Cocoa, Robusta Coffee, White Sugar, Aluminium, Copper, Lead, Nickel, Tin, and Zinc.

ESMA has also published a list of liquid contracts with bespoke position limits.

The proposed position limits are consistent with the methodology established in RTS 21 and the objectives of preventing market abuse and supporting orderly pricing and settlement conditions.