Regulatory Alerts2020-08-06
ESMA Opinion on position limits for EEX Supramax TC 10 Freight contracts
The European Securities and Markets Authority (ESMA) issued an opinion assessing the compatibility of position limits set by BaFin for EEX Supramax TC 10 Freight Futures and Options contracts with MiFID II and RTS 21. ESMA confirmed that the proposed spot month and other months' limits of 4,139 lots, representing 25% of open interest, comply with the established calculation methodology and regulatory objectives. However, ESMA recommended that BaFin carefully monitor trading patterns during the spot month and review the limits on a timely basis to prevent market abuse and ensure orderly settlement.
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