ESMA has opened a consultation and published this document which covers the method by which changes to the MIFID II position limits and reporting regime will be implemented as part of the “quick fix” that will apply from next year (see here). The consultation closes on 23 July 2021.

The changes to the position limits regime include additional exemptions for liquidity provision and for Financial Entities who hold positions on behalf of Non Financial Entities as well as requirements for venues to implement position controls. There are many details on the proposed implementation in the document including around the behaviour of specific commodities and also the regimes already implemented in the US and by several venues. A draft of the new version of the Regulatory Technical Standard (“RTS21a”) is found at the end of the document.

The document also covers proposed changes to the position reporting regime, as detailed in Implementing Technical Standard 4 (“ITS4”).

Earlier this year ESMA issued a statement recommending that National Competent Authorities prioritise supervisory actions relating to limits that would still be in force after the change applies next year, in effect requesting that the reduction in scope of the limits regime commence immediately (see here).