Tuesday June 16 2020

News Source: Fund Regulation

Focus: Position Limits (including MIFID II)

Type: General

Country: UK

On 16th June 2020, the Financial Conduct Authority (FCA) published updated position limits for certain commodity derivative contracts traded on ICE Futures Europe. The limits have been established under the Markets in Financial Instruments Regulations 2017 (MIFI Regs).

The limits are being revised in accordance with RTS 21, which states that position limits should be reviewed when there is a significant change in OI, deliverable supply, or any other significant change in the market.

Increases to limits (AEB, AEO, SMT and STB contracts) will apply immediately.

These limits are published in advance of the publication of ESMA Opinions on the limits, and may change in light of an ESMA opinion, or in the event that FCA decide it is necessary. This is in accordance with the statements of ESMA and of the FCA published on 28 September 2017.

The following table sets out the affected contracts and the revised limits:

ContractProduct codePrevious Spot Month limitPrevious Other Months’ limitRevised Spot Month limitRevised Other Months’ limit
Argus Euro-bob Oxy FOB Rotterdam Barges vs Brent 1st Line Future (in Bbls)AEB 12,950 lots 16,150 lots 12,950 lots 23,850 lots
Argus Euro-Bob Oxy FOB Rotterdam Barges FutureAEO 4,750 lots 4,000 lots 4,750 lots 6,450 lots
Gasoline Diff – Singapore Mogas 95 Unleaded vs Singapore Mogas 92 Unleaded FutureSMD TBA TBA 6,050 lots 6,050 lots
Gasoline – Singapore Mogas 92 Unleaded (Platts) FutureSMT 41,050 lots 33,900 lots 41,050 lots 39,400 lots
Singapore Mogas 92 Unleaded vs Brent 1st Line FutureSTB 20,100 lots 20,100 lots 25,350 lots 25,350 lots

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