Regulatory Alerts2020-06-03
Opinion on third-country trading venues for the purpose of position limits under MiFID II
The European Securities and Markets Authority (ESMA) issued this opinion to clarify the treatment of commodity derivatives traded on third-country venues under the MiFID II position limit regime. ESMA mandates that such contracts should not be classified as over-the-counter (OTC) trades if the venue operates a multilateral system, is authorized and supervised by a competent authority, and is a signatory to the IOSCO Multilateral Memorandum of Understanding. Consequently, positions in these qualifying third-country venues are excluded from EU position limits, while derivatives traded on non-listed venues are treated as OTC trades effective from 3 October 2020.
Share