The Financial Markets Law Committee (FMLC) has published a letter it has sent to the European Securities and Markets Authority , requesting clarification on the operation of Article 4 of Commission Delegated Regulation (EU) No. 2017/591 with regard to regulatory technical standards for the application of position limits to commodity derivatives (RTS 21), and the manner in which commodity derivative positions are to be aggregated.

The FMLC states that in its view the meaning of “control” within the context of RTS 21 is uncertain. In particular, it is unclear whether a parent undertaking is required to aggregate the positions of a subsidiary undertaking where it cannot control the use of such positions, where the subsidiary is not a collective investment vehicle or the manager of a collective investment vehicle.

View FMLC writes to ESMA on legal uncertainties arising in context of MiFID II RTS on aggregation of commodity derivatives positions and meaning of “control”, 3 November 2017