ESMA has released an updated MiFID II Questions and Answers document covering commodity derivatives related topics, which can be found here. There are 3 new answers:

1. Ancillary activity Q10 – Page 24 – The capital base used in the capital test should be a worldwide number based on consolidated accounts.
2. Ancillary activity Q11 – Page 25 – “C10” derivatives should be included in the test based on whether the underlying is in one of the appropriate categories.
3. Position management controls – Q1 Page 30 – States that position management controls are part of a spectrum of controls to be used by venues and National Competent Authorities(NCAs).

The industry now awaits the setting of position limits, following the statement from ESMA that NCAs may publish draft limits without first going through a process where ESMA approve them (see here).