UK - Position limits on a further commodity derivative contract
On 25 January 2018, the FCA announced that it has set position limits on a further commodity derivative contract that is traded on a UK trading venue.
On 25 January 2018, the FCA announced that it has set position limits on a further commodity derivative contract that is traded on a UK trading venue. The FCA established the limits under Regulation 16 of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (SI 2017/701) (MIFI Regs) in accordance with Article 57 of MiFID II and the methodology for calculation established in Commission Delegated Regulation (EU) 2017/591 (RTS 21). The limits will apply from 31 March to positions held in the spot month and the other months' periods for the Swiss Baseload Power contract, which is traded on the OTF of GFI Brokers Ltd. The FCA explains that it has published the limits in advance of the required publication by ESMA of opinions on the limits. They may therefore change in the light of an ESMA opinion, or if the FCA itself decides it is necessary.