Position Limits Changes in the EU
Commodity derivative investors: More big changes on the horizon for position limits in Europe. As we anticipated, we know the EU’s position limits regime under MiFID II is easing some of its regulatory burdens. The latest? ESMA is launching a consultation on revising many of its regulatory technical standards (RTS), including exemptions for financial entities and for liquidity provision, treatment of cross-listed products, calculation of the limit levels by local regulators, and more. Public responses to ESMA’s proposed new RTS are due by 23 July 2021, after which ESMA will consider those responses and submit its Final Report for European Commission approval by November 2021. Read more here.