ESMA: MiFID II review report on position limits and position management

ESMA has published a consultation paper on position limits and position management in commodity derivatives. The paper analyses the impact of position limits on market abuse and orderly pricing and settlement and the impact the position limit regime may have had on less liquid commodity derivative contracts and sets out proposed changes to the legal framework. These include the introduction of a limited position limit exemption for financial counterparties; enhancing convergence in the implementation of position management regimes by trading venues, and an amendment to the quantitative thresholds that trigger publication of weekly position reports by trading venues, Responses are required by 8 January 2020.