ISDA and AFME respond to the FCA's consultation on commodity derivatives

Article summary

The International Swaps and Derivatives Association (ISDA) and the Association for Financial Markets in Europe (AFME) have responded to the Financial Conduct Authority (FCA)'s consultation on the changes to the UK commodity derivatives regulatory framework. Generally, the associations support the FCA’s proposal to reduce the position limits regime to align with the risks associated with certain commodity derivatives contract. However, they expressed concern over the suggested approaches for setting position limits and adding more reporting obligations.