Regulatory Alerts2020-08-06
ESMA Opinion on Position Limits for EEX PSV Natural Gas Contracts
The European Securities and Markets Authority (ESMA) issued an opinion assessing the compatibility of position limits set by the German Federal Financial Supervisory Authority (BaFin) for Punto di Scambio Virtuale (PSV) natural gas futures traded on the European Energy Exchange (EEX). ESMA confirmed that the proposed spot month limit of 15% of deliverable supply and the other months limit of 40% of open interest comply with the calculation methodology in RTS 21 and the market abuse prevention objectives of MiFID II. While endorsing the limits as adequate, ESMA recommended that BaFin carefully monitor trading patterns and review the limits on a timely basis to ensure orderly market conditions.
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