The UK Financial Conduct Authority (FCA) has published updated position limits for certain commodity derivative contracts traded on ICE Futures Europe. The limits have been established under the Markets in Financial Instruments Regulations 2017 (MIFI Regs).

The limits are being revised in accordance with RTS 21, which states that position limits should be reviewed when there is a significant change in OI, deliverable supply, or any other significant change in the market.

The FCA stated that increases to limits (AEB, AEO, SMT and STB contracts) will apply immediately.

For decreases to limits, including where limits were previously To Be Announced ‘TBA’, the regulator said it gives two months’ notice before the revised limits come into force to enable market participants to adjust their trading strategies in a responsible way. These decreased limits (SMD contract) will apply from 17 August 2020.

These limits are published in advance of the publication of ESMA Opinions on the limits, and may change in light of an ESMA opinion, or in the event that the FCA decides it is necessary. This is in accordance with the statements of ESMA and of the FCA published on 28 September 2017.

The following table sets out the affected contracts and the revised limits:

The following table sets out the affected contracts and the revised limits:

More details of position limits for commodity derivative contracts can be seen on the FCA’s website here.