Position Limits

As part of the implementation of the Markets in Financial Instruments Directive II (MiFID II), position limits for commodity derivatives were introduced on 3rd January 2018. This means that upper limits for holding derivatives whose underlying is a commodity are applicable. Neither individual undertakings nor groups of undertakings are allowed to hold positions that, in aggregate, exceed these thresholds. However, there is a possibility to take out positions from the limit calculation by making use of a hedging exemption for positions which are objectively measurable as reducing risks (see chapter “Hedging Exception” for further details).

Emission allowances and derivatives on emission allowances are not commodity derivatives within the meaning of MiFID II, but they are subject to position reporting nevertheless.

  • What are position limits for commodity derivatives?

  • What types of position limits are existent?

  • Who determines the position limits?

  • Overview of the current position limits for EEX products

  • Hedging Exemption