A group of NGOs have written this letter to Lord Hill, European Finance Commissioner, claiming that the proposed rules under MiFID II on position limits are not strict enough. This report on The Guardian web site also looks at the letter ,as does this report on The Economic Voice web site.
Position Limits seek to cap the proportion of the market a participant may hold , by setting limits against each on-venue commodity derivatives contract. Under the proposed rules, National Competent Authorities (NCA) set two limits per contract, one for the “next delivery” and one on forwards. The limit can be between 5% and 35% of deliverable supply or open interest.
The rules are captured in Regulatory Technical Standard (RTS) 21, whose current version (as of September 2015) provides rules for which contract are considered equivalent, how to roll in off venue equivalent positions, and also when a hedge exemption may be used. The RTS has still not been finalised and the market awaits further news on whether there will be any changes.