The FCA has published position limits on certain commodity derivative contracts which are traded on UK trading venues.

The limits have been established by exercising the FCA’s power of direction under Regulation 16 of The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 in accordance with Article 57 of MiFID II and the methodology set out in Regulatory Technical Standard 21.

The limits will apply from 3 January 2018 to positions held in the Spot Month and the Other Months’ periods for each commodity derivative.

The published limits apply to positions held in the named commodity derivatives, in aggregation with any associated mini, Balmo (Balance of Month) and mini-Balmo contracts where, the contracts have identical contractual specifications, for these purposes. Where to contracts are based on an identical underlying commodity and the contracts are traded in different units (e.g. barrels vs metric tonnes), the same position limit shall apply to positions in those contracts in aggregate.

View FCA publishes position limits for commodity derivatives contracts, 26 October 2017