Regulatory Alerts2023-05-03
ESMA Opinion on position limits for Euronext Milling Wheat No. 2 contracts
The European Securities and Markets Authority (ESMA) issued an opinion assessing the compatibility of new position limits proposed by the Autorité des Marchés Financiers (AMF) for Euronext Milling Wheat No. 2 contracts with MiFID II and RTS 21a. The AMF intends to implement a gliding path for spot month limits, reducing them from 70,000 lots to 20,000 lots near expiry, while setting other month limits at 100,000 lots generally and 120,000 lots during the final 21 trading sessions. ESMA concluded that these limits comply with the established calculation methodology and support the objectives of preventing market abuse and ensuring orderly pricing and settlement.
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