Two weeks after the updated Regulatory Technical Standard (RTS) number 21 on position limits was published by ESMA, Lord Farmer has given a speech in relation to “Brexit” (the potential departure of the UK from the EU), and referred to MiFID II, in particular with respect to the metals market. An article on the speech can be found here on the Daily Telegraph web site. The speech was generally in favour of Brexit although many others  argue against departure.

A few weeks ago, EY published this paper on the possible impact of position limits on the metals market. It includes a few examples of trading strategies which may be adversely affected by the new rules. Despite the paper being written before the new version of the RTS was published, it does still apply, although a few rule,s such as that on economically equivalent OTC contracts, have been altered.