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Mifid, Uncategorized

ESMA permits NCAs to publish position limits directly

ESMA yesterday issued this document, stating that they had agreed with National Competent Authorities (NCAs) that they may publish position limits under MiFID II directly without having to wait for ESMA to issue an opinion on them. There is also a similar arrangement for pre transparency waivers.

The document states that there is no longer sufficient time for ESMA to issue opinions on all limits before 3rd January 2018, and that therefore an acceleration mechanism is required. NCAs may now publish limits directly. ESMA will issue opinions later, and if different to the NCA’s view will permit the market a transition period before they apply. So far only 3 opinions have been issued, all relating to agricultural commodity derivatives on the MATIF exchange (see here).

Following ESMA’s press release the UK’s Financial Conduct Authority stated that they would start to issue limits in October. Earlier this week the FCA issued guidelines on the application process from Non Financial Entities to obtain hedge exemptions (see here).

With just over 3 months to go until the start of MiFID II, many firms are keen to discover the initial limits so that preparations for the onset of the rules can be finalised.



About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity 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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