Regulatory Alerts2020-09-23
ESMA Opinion on position limits for Nasdaq Oslo Nordic Power contracts
The European Securities and Markets Authority (ESMA) issued an opinion approving the position limits set by the Norwegian Finanstilsynet for Nordic Power futures and options, including Electricity Price Area Differentials (EPADs). The regulator validated the proposed limits of 19,308,181 MWh for the spot month and 67,610,330 MWh for other months, confirming they align with the calculation methodology in RTS 21 and MiFID II objectives. ESMA concluded that these limits effectively prevent market abuse and ensure orderly settlement without unduly hampering market liquidity.
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