On 24 March 2022, the European Commission adopted a Delegated Regulation supplementing MiFID II with regard to regulatory technical standards specifying the content of position management controls by trading venues. The Delegated Regulation is intended to harmonise and converge the implementation of position management controls put in place by trading venues in accordance with Article 57(8) of MiFID II by specifying the content of position management controls, thereby taking into account the characteristics of the trading venues concerned.

The Delegated Regulation:

  • Introduces the general monitoring obligations for the exchanges (Article 1).
  • Specifies what an accountability level is, that accountability levels should be set for commodity derivatives made available for trading that are physically settled or can be physically settled and specifies what exchanges have to do when a position exceeds the accountability level (Article 2).
  • Requires the exchange to assess the adequacy and effectiveness of the accountability levels. It also specifies the reporting requirements of the trading venues to their national competent authority (Article 3).

The Delegated Regulation enters into force on the twentieth day following that of its publication in the Official Journal of the European Union.