The UK Financial Conduct Authority (FCA) has reviewed the bespoke position limits set for a number of commodity derivatives traded on UK venues.
Following its review and as a result of strong growth in some commodity derivative contracts, the FCA has increased the limits of approximately 20 commodity derivative contracts as of February 8.
Continue Reading FCA Revises List of MiFID II Position Limits
On January 25, the UK Financial Conduct Authority (FCA) published position limits on a further commodity derivative contract that is traded on a UK trading venue.
Continue Reading FCA Publishes Position Limits on the Swiss Baseload Power Contract
On January 16, the German federal regulator, Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), updated its Database of Position Limits and published additional indicative position limits for the following contracts:
Continue Reading BaFin Publishes Additional Indicative MiFID II Position Limits
Under the revised Markets in Financial Instruments Directive (MiFID II), limits are required to be established on the size of a net position a person can hold (at all times) in commodity derivatives traded on EU/European Economic Area (EEA) trading venues and economically equivalent over-the-counter contracts.
On December 7, the UK Financial Conduct Authority (FCA) updated its website in connection with indicative position limits for commodity derivative contracts. The FCA website lists the commodity derivative contracts that the FCA has currently identified as trading on a UK trading venue and in respect of which, beginning January 3, 2018, there will be a bespoke position limit set.
Continue Reading UK FCA, Dutch AFM and French AMF Publish Position Limits for Commodity Derivative Contracts
On October 24, the European Securities and Markets Authority (ESMA) published nine opinions on limits regarding commodity derivatives under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The opinions follow the work plan agreed by ESMA and the national competent authorities of the European Union (NCAs), under which position limits will be published by the NCAs prior to ESMA publishing an opinion on such limits (for more information please see the September 29, 2017 edition of Corporate & Financial Weekly Digest).
Continue Reading ESMA Agrees to MiFID II Position Limits Proposed by FCA
On October 18, the UK Financial Conduct Authority (FCA) published the necessary forms for firms to apply for position limits exemptions under the revised Markets in Financial Instruments Directive (MiFID II).
Continue Reading FCA Opens Commodity Derivatives Position Limit Exemption Applications
On July 19, the UK Financial Conduct Authority (FCA) updated its webpage on the introduction of the commodity derivatives position limits and reporting regime under the revised Markets in Financial Instruments Directive (MiFID II).
The FCA explains that, under the MiFID II Directive, firms or individuals who trade in commodity derivatives on a professional basis may, under Article 2(1)(j) of MiFID II, be able to make use of an exemption from authorization (referred to as the “ancillary activity exemption”).
Continue Reading FCA Publishes Notification Guide for Firms Wanting To Rely on MiFID II Ancillary Activity Exemption
On February 6, the Division of Market Oversight (Division) of the Commodity Futures Trading Commission issued CFTC Letter No. 17-06, which provides time-limited no-action relief from the requirement that persons relying on certain aggregation exemptions from federal position limit levels must file notice with the CFTC.
Specifically, the Division stated that it would not recommend…
On May 26, the Commodity Futures Trading Commission proposed amendments to its December 2013 speculative position limits proposal regarding 28 core referenced futures contracts.
The proposed rules would allow certain exchanges and swap execution facilities, subject to CFTC review, to recognize and exempt from federal position limits both enumerated and non-enumerated bona fide hedges, certain spread positions and certain enumerated anticipatory bona fide hedges. The proposal also amends certain definitions, including the definition of (1) bona fide hedging position; (2) intermarket spread position; and (3) intramarket spread position. Further, the proposal delays the establishment and monitoring of exchange-set swaps position limits for exchanges that do not have access to sufficient swap position information.
Continue Reading CFTC Proposes Supplemental Amendments to Position Limits Proposal
The Commodity Futures Trading Commission has modified its position aggregation proposal, which initially was proposed on November 15, 2013. Under the 2013 proposal, an entity owning 50 percent or more of another entity would be required to aggregate the owned entity’s positions for purposes of complying with speculative position limits unless it filed an application with the CFTC and obtained the CFTC’s prior approval to disaggregate. In contrast, an entity owning between 10 and 50 percent of another entity would be required to aggregate the owned entity’s positions unless the entity files a notice with the CFTC. This notice filing, which must demonstrate compliance with certain conditions set forth in the proposed rule, would be effective upon submission.
Continue Reading CFTC Modifies Position Limit Aggregation Proposal
