Regulatory Alerts2021-01-12
ESMA Opinion on position limits for Phelix DE Base Power contracts
The European Securities and Markets Authority (ESMA) issued an opinion on 2 December 2020 approving revised position limits for Phelix DE Base Power Futures and Options set by the German Federal Financial Supervisory Authority (BaFin). ESMA confirmed that the new spot month limit of 41,991,030 MWh and the other months' limit of 67,437,064 MWh comply with the calculation methodology in RTS 21 and support the objectives of MiFID II. The regulator validated BaFin's updated open interest data and deliverable supply calculations, concluding that the limits prevent market abuse while maintaining orderly pricing and liquidity.
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