ESMA has opened a consultation on the MiFID II position limits and position management regimes, following a “call for evidence” earlier this year (see here).  The consultation document can be found here.

The document reveals that the call for evidence returned some doubts as to the effectiveness of the regime in countering market abuse and disorderly conditions as well as a possible negative effect on liquidity.

Amongst other proposals, the consultation suggests the removal of the “C6 carve out” which excludes some physical forwards in gas and power traded on an Organised Trading Facility(OTF) from financial regulation (page 23) .

The consultation closes in early January.