The Financial Conduct Authority (FCA) has today 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.
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', we give 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 we decide 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:
|
Contract |
Product code |
Previous Spot Month limit |
Previous Other Months’ limit |
Revised Spot Month limit |
Revised Other Months’ limit |
|---|---|---|---|---|---|
|
Argus Euro-bob Oxy FOB Rotterdam Barges vs Brent 1st Line Future (in Bbls) |
AEB |
12,950 lots |
16,150 lots |
12,950 lots |
23,850 lots |
|
Argus Euro-Bob Oxy FOB Rotterdam Barges Future |
AEO |
4,750 lots |
4,000 lots |
4,750 lots |
6,450 lots |
|
Gasoline Diff - Singapore Mogas 95 Unleaded vs Singapore Mogas 92 Unleaded Future |
SMD |
TBA |
TBA |
6,050 lots |
6,050 lots |
|
Gasoline - Singapore Mogas 92 Unleaded (Platts) Future |
SMT |
41,050 lots |
33,900 lots |
41,050 lots |
39,400 lots |
|
Singapore Mogas 92 Unleaded vs Brent 1st Line Future |
STB |
20,100 lots |
20,100 lots |
25,350 lots |
25,350 lots |
Full details of the commodity derivative contracts and the limits set on positions in them.