MiFID II: Market Demands Position Limits Revision
By Alice Tchernookova
January 30, 2020, Practice Insight from IFLR
Trading platforms and industry associations have called for a review of position limits to commodity derivatives trading under MiFID II on the grounds that this would restore liquidity to certain parts of the market.
Introduced as part of the far-reaching MiFID II two years ago, the regime sets restrictions on the maximum size of positions that a market participant can hold in commodity derivatives. The limits, which were established using the RTS21 methodology, apply to contracts traded on trading venues and to their economically equivalent over-the-counter (EEOTC) contracts.
