Regulatory Alerts2020-08-06
ESMA Opinion on position limits for EEX Capesize C7 Freight Futures contracts
The European Securities and Markets Authority (ESMA) issued an opinion approving position limits set by BaFin for EEX Capesize C7 Freight Futures contracts. BaFin established limits of 4,320 lots for both the spot and other months, representing 50% of open interest, to prevent undue market constraints given the contract's liquidity profile. ESMA concluded that these limits comply with RTS 21 and MiFID II objectives, provided that trading patterns are closely monitored and limits are reviewed timely.
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