ESMA · ESMA_QA_1545 Answer Published
Position management controls
- Regulation
- Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
- Topic
- Position management controls
- Submitted
- 2017-10-04
- Answered
- 2017-10-04
Question
Are position management controls required to play a role in the application of position limits applied by NCAs according to Article 57(1) MiFID II?
Answer
[ESMA 70-872942901-36 Commodity derivatives Q&A, Q&A 5.1] No. NCAs are responsible for the application of position limits established under Article 57(1). Recital (128) MiFID further specifies that the powers to require the reduction or termination of a position or to provide back liquidity should “mitigate the effects of a large or dominant position”. However, the controls listed in Article 57(8) are not exhaustive and shall not prevent trading venues from developing their own position limits as a mean to control positions held on commodity derivatives traded on their trading venues.
This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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