ESMA has agreed the first position limits under MiFID II for some agricultural commodity derivatives contracts on the MATIF exchange. The way in which position limits work has been outlined in Regulatory Technical Standard 21. Three sets of limits have been set, each with a corresponding opinion document:
The rapeseed and milling wheat limits are “profiled” that is that the spot month limit and other months limits vary over time. Each limit has been varied to some degree from the baseline. The corn spot month limit has been reduced to 5% of the deliverable supply.
We can expect many more limit announcements over the coming months.