Regulatory Alerts2021-01-12
ESMA Opinion on position limits for EEX Phelix DE/AT Base Power contracts
The European Securities and Markets Authority (ESMA) issued an opinion on revised position limits for EEX Phelix DE/AT Base Power contracts proposed by the German Federal Financial Supervisory Authority (BaFin). ESMA concluded that the new limits, set at 9,050,124 MWh for the spot month and 4,540,085 MWh for other months, comply with the calculation methodology in RTS 21 and the objectives of MiFID II. While approving the limits, ESMA recommended that BaFin carefully monitor trading patterns, particularly during the spot month, to mitigate risks associated with the limit being substantially higher than current open interest.
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