The position limits exemption application is now available for completion on the FCA’s Connect webpage. Any exemption approved will be an uncapped exemption for risk-reducing positions in the specific contract. However, the FCA will still monitor the reported positions against the basis of the information provided in the application form. If there is a significant change in the nature or value of the non-financial entity’s (NFE) commercial or trading activities the NFE is required to submit a new application.
Any position limit exemption will cover all risk-reducing positions held in the specific primary commodity derivative, and in any associated mini, Balmo (“Balance of Month”), mini-Balmo or other contracts such as those where the same commodity is traded in contracts denominated in different units where, on a case by case basis, the FCA has determined that the contracts should be aggregated. The aggregation is identifiable in the table here with the publication of the position limits. An exemption application should list each venue product code on a trading venue that is to be included in the exemption.
View Commodity derivatives: introduction of position limits and reporting regime, 18 October 2017