Yesterday the UK’s Financial Conduct Authority (FCA) opened this consultation covering the proposed changes to the commodity derivatives regime in the UK. It focuses on changes to the position limits rules and the ancillary Activity test. Much of the related legislation is already published(see here).The main changes discussed are:

• Trading venues to set position limits.
• Narrowing the scope of the position limits regime to “critical” contracts.
• More position management controls and also a wider requirement to report equivalent OTC contracts.
• The use of position limits exemptions.
• Changes to the Ancillary Activity test.

The consultation closes on 16 February 2024.