FCA ups position limits for ICE Futures Europe traded commodity derivative contracts

Source: FNG Gerald Segal 2020-06-16

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:

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

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

FCA ups position limits for ICE Futures Europe traded commodity derivative contracts

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