MiFID II—commodity derivatives—position limits
MiFID II—commodity derivatives—position limits

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • MiFID II—commodity derivatives—position limits
  • MiFID II and commodity derivatives
  • What are position limits?
  • When have the position limits applied from?
  • Why have position limits?
  • What is a commodity derivative for the purposes of position limits?
  • Who do position limits apply to?
  • RTS 21
  • Calculating the net position of a person
  • Trading commodity derivatives in significant volumes
  • More...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

BREXIT: UK is leaving EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For guidance, see Practice Notes: Brexit—impact on finance transactions—Key issues for derivatives transactions, Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs and The impact of Brexit on the MiFID II regime.

This Practice Note sets out what position limits are under Article 57 of the recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II) and how these apply to commodity derivatives or derivatives with an underlying commodity, pursuant to Commission Delegated Regulation (EU) 2017/591 (RTS 21).

MiFID II and commodity derivatives

MiFID II has increased the scope of activities, services and financial instruments beyond what was covered by the Markets in Financial Instruments Directive (Directive 2004/39/EC) (MiFID). It has also made changes to several of the exemptions that were available under MiFID, including those which were

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