1. European
  2. ESMA - European Securities and Markets Authority
  3. Questions and Answers
  4. 2017
Date-stamp loading
  1. Questions and Answers on MiFID II and MiFIR commodity derivatives topics (ESMA70-872942901-36) (updated 23 September 2022)
  2. 2 Position limits [Last update: 23/09/2022]
  3. Question 14 Is it necessary for a Non-Financial Entity (NFE) to apply to the relevant NCA of a trading venue for a position limit exemption in all contracts in which that NFE holds positions? [Last update: 07/07/2017]
Previous Next
Version date: 7 July 2017 - onwards

Question 14 Is it necessary for a Non-Financial Entity (NFE) to apply to the relevant NCA of a trading venue for a position limit exemption in all contracts in which that NFE holds positions? [Last update: 07/07/2017]

Art. 57 of MiFID II RTS 21

Is it necessary for a Non-Financial Entity (NFE) to apply to the relevant NCA of a trading venue for a position limit exemption in all contracts in which that NFE holds positions?

Answer 14

No. It is necessary only for an NFE to apply for an exemption when it expects that one is necessary to permit it to hold a position that is risk-reducing for its commercial activities which would be in excess of the position limit for that commodity derivative which has been set by the NCA.

There is no requirement under MIFID II to apply for a position limit exemption if an NFE does not expect to need one for its normal level of activities.

Comparing proposed amendment...
Previous Next