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Mifid, Uncategorized

First MiFID II position limits set

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:

  • Rapeseed  – see here
  • Corn – see here
  • Milling wheat – see here

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.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on energy and commodity regulation. He has more than 20 years of experience in energy and commodity trading, credit, risk and financial technology. He has delivered a series of trading, credit and risk solutions to a wide variety of oil majors, power and gas companies and investment banks. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.

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