This week the European Parliament will discuss Regulatory Technical Standard 21, which specifies how Position Limits are to be calculated under MiFID II. The objections which have previously been reported are now outlined on the web site of Green MEP Sven Giegold here. The post includes this link to this resolution for rejection. The resolution objects to “loosely defined” criteria for Economically Equivalent OTC contracts (EEOTC) and also an alleged lack of direction to regulators as to how to handle situations of excessive volatility. The main target to the objection is the impact on the agricultural commodities market. it is felt that the RTS provides some potential loopholes which will still permit possible manipulation of food prices, thus blunting the effectiveness of the rules in meeting their objectives.
If the RTS were objected to, it would be some time before the final version would be available, although the final deadline is unlikely to move from 3rd January 2018. While the resolution requests a fast turnaround so that the timeline can be respected, any delay will cause issues for those trying to comply with the rules.