Regulatory Alerts2020-08-06
ESMA Opinion on position limits for ICE Endex German Power Financial Base contracts
The European Securities and Markets Authority issued an opinion approving the Netherlands Authority for the Financial Markets' proposed position limits for ICE Endex German Power Financial Base futures and options. ESMA validated the AFM's methodology, which sets a spot month limit at 11% of deliverable supply and an other months' limit at 50% of open interest, finding both compliant with MiFID II and RTS 21. The regulator emphasized the need for careful monitoring of trading patterns and timely review of the spot month limit to prevent market abuse while supporting market liquidity.
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