See here for an article on the Complinet web site written by Reuters which highlights further push back by certain MEPs on the revised Regulatory Technical Standard (RTS) 21 on position limits. The article highlights a series on concerns by certain MEPs that the number of contracts affected by the rules is excessive. In particular there is a desired emphasis on commodity derivatives related to food, rather than other commodities.

The article also references this letter written by several MEPs to the Commission in July. In that letter, concerns are raised that the change in rules proposed by ESMA relating to less liquid contracts, may be too lenient, and prevent the rules being meaningful for many. The article concludes with a quote stating that while the deadline is approaching, it is important for the final rules to reflect the desire of the parliament.

In reality, the practical steps that medium and large companies need to take to correctly implement position limits are significant. Uncertainty makes the successful delivery of such programmes challenging. At some point therefore, many would consider finalisation to be important. One possible compromise would be to finalise the mechanism for calculating the limit, as opposed to the ranges of the limits that can be set by NCAs. Finalising the mechanism would permit market participants to plan their programmes, whilst leaving the actual levels to be agreed by the different regulatory bodies at a later date.