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  1. Questions and Answers on MiFID II and MiFIR commodity derivatives topics (ESMA70-872942901-36) (updated 23 September 2022)
  2. 5 Position management controls [Last update: 04/10/2017]
  3. Question 1 Are position management controls required to play a role in the application of position limitsapplied by NCAs according to Article 57(1) MiFID II? [Last update: 04/10/2017]
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Version date: 4 October 2017 - onwards

Question 1 Are position management controls required to play a role in the application of position limitsapplied by NCAs according to Article 57(1) MiFID II? [Last update: 04/10/2017]

Art. 57 of MIFID II

Are position management controls required to play a role in the application of position limits applied by NCAs according to Article 57(1) MiFID II?

Answer 1

No. NCAs are responsible for the application of position limits established under Article 57(1). Recital (128) MiFID further specifies that the powers to require the reduction or termination of a position or to provide back liquidity should "mitigate the effects of a large or dominant position".

However, the controls listed in Article 57(8) are not exhaustive and shall not prevent trading venues from developing their own position limits as a mean to control positions held on commodity derivatives traded on their trading venues.

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