ESMA has published the final version of Implementing Technical Standard 4, which specifies how position reporting is to work, as required by Article 58 of MiFID II. The document can be found here and the accompanying press release here.
Position reporting is intended to support monitoring of the utilisation of position limits under MiFID II, which will apply to all “on venue” commodity derivatives in the EU as well as Economically Equivalent OTC deals (EEOTC). Market Operators and Investment Firms are obligated to submit reports, with some divergence in the requirements of each group. The latest version of the ITS makes some alterations to the breakdown of certain contracts and applicability of netting, as well as other changes.
It is noteworthy that non investment firm do not have direct obligations under ITS 4. Such firms will include energy and commodity market participants that pass the “Ancillary Activity” test specified in RTS 20. This means that certain data will not be reported, in particular EEOTC transactions between non investment firms.