Regulatory Alerts2020-08-06
ESMA Opinion on Revised Position Limits for EEX Capesize TC5 Freight Contracts
The European Securities and Markets Authority (ESMA) issued an opinion assessing the revised position limits set by the German regulator BaFin for EEX Capesize TC5 Freight Futures and Options contracts. BaFin established both the spot month and other months' limits at 13,591 lots, representing 25% of the calculated open interest following the migration of trading from Nasdaq Futures Inc. to the European Energy Exchange. ESMA concluded that these limits comply with the calculation methodology in RTS 21 and are consistent with the market abuse prevention objectives of MiFID II.
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