ESMA has released this report summarising the responses received from the recent consultation focused on the MiFID II position limits regime (see here). The report also addresses some other topics including the Ancillary activity test. It includes:
- Comments on the effectiveness of the current position limits regime, with a great deal of feedback that it applies to too many contracts.
- A recommendation that limits should only be applied to significant and critical contracts.
- Comments on the removal of the “REMIT carve out” – feedback was overwhelming against removal.
- A recommendation that the use of the hedge exemption for position limits by counterparties be permitted in some cases.
- A recommendation that the Ancillary Activity Test be changed at level 1, triggered by issues related to Brexit.
The European Commission’s consultation on position limits (see here) is still open.
ESMA also issued a report on the weekly position reports published as part of the position reporting regime (see here).