FCA Publishes Further Set of Position Limits for Commodity Derivative Contracts
On November 15, the UK Financial Conduct Authority (FCA) updated its webpage (webpage) in connection with position limits for commodity derivative contracts.
Under the revised Markets in Financial Instruments Directive (MiFID II), limits are required to be established on the size of a net position a person can hold (at all times) in commodity derivatives traded on EU/EEA trading venues and economically equivalent over-the-counter contracts. The webpage lists the commodity derivative contracts that the FCA has currently identified as trading on a UK trading venue, which, beginning January 3, 2018, will have a bespoke position limit set against them. The list will be subject to changes and updates from time to time, and firms are encouraged to check it regularly.
The FCA has also updated the position limits for Dated Brent, which it initially published on October 26, to reflect the aggregation of this contract with the daily Dated Brent contract (which has the same underlying), the inclusion in the definition of Brent oil of the Troll oilfield from January 2018, and the inclusion of stock data.
The webpage is available here.