Finansinspektionen’s regulations regarding position limits

Finansinspektionen’s regulations regarding position limits

In force from 2018-01-03

Summary

FI has decided on new regulations that establish position limits for commodity derivatives. The new rules contain limits on the size of the positions in commodity derivatives held by natural and legal persons.

New rules in the Securities Market Act regarding commodity derivatives will begin to apply in January 2018. According to these rules, FI shall establish position limits for commodity derivatives that are traded on a trading venue in Sweden.

In terms of position limits for Nordic power derivatives that are traded on Nasdaq Stockholm, FI has applied the method of calculation set out in Commission Delegated Regulation (EU) 2017/591 to establish position limits.

The regulations are part of the implementation of the revised EU Directive on markets in financial instruments (MiFID II).

The new regulations enter into force on 3 January 2018.

There is an error in the regulations. See the correction sheet below.

Amendments

Finansinspektionen is amending Finansinspektionen's regulations (FFFS 2017:22) regarding position limits. The amendments pertain to replacing the current position limits with a new position limit for new and less liquid agricultural commodity derivatives in accordance with Article 17(1) of Commission Delegated Regulation (EU) 2022/1302. Additionally, the appendix, and references made to it in the regulations, have been repealed. The definitions and terms found only in the appendix have also been repealed.

The background to the proposed amendments is primarily that the EU regulatory framework on which the regulations relate have been amended and, in certain cases, repealed, and that the commodity derivatives that are connected to Nordisk Kraft and EPAD contracts are no longer traded on a trading venue in Sweden. The amendments enter into force on 1 January 2024. Amendment 2023:21

FI has decided on amendments to Finansinspektionen's regulations (FFFS 2017:22) regarding position limits. According to the changes, EPAD contracts are included in the position limits for Nordic power.

In January 2018, new regulations regarding commodity derivatives went into effect. According to these regulations, FI shall determine position limits for commodity derivatives that are traded at a trading venue in Sweden.

FI's obligation to establish position limits is set out in the revised EU Markets in Financial Instruments Directive (MiFID II).

The amendments enter into force on 20 April 2018. Amendment 2018:3

Documents

FFFS 2017:22

Changes

Number

FFFS 2023:21

Date

2024-01-01

Heading

FFFS 2023:21

Number

FFFS 2018:3

Date

2018-04-20

Heading

FFFS 2018:3

Read more

Correction sheet FFFS 2017:22