ESMA consults on commodity derivatives technical standards as part of MiFIDII Recovery Package
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today launched a consultation, as part of the post-Covid MiFID II Recovery Package, seeking input from market participants on its draft Technical Standards for commodity derivatives.
ESMA’s proposals relating to the application of position limits to commodity derivatives focus on:
- developing procedures for financial entities undertaking hedging activities and for liquidity providers to apply for an exemption from position limits; and
- suggesting other technical adjustments to improve the application of the position limit regime in practice.
In addition, the Consultation Paper also contains ESMA’s proposals for technical standards on position management controls.
The consultation forms part of ESMA’s mandates under of the MiFID II Recovery Package, a set of measures aimed at supporting the recovery from the severe economic shock caused by the Covid-19 pandemic.
The consultation closes on 23 July 2021, following which ESMA will consider the responses received, finalise the draft technical standards and submit a final report to the European Commission for endorsement by November 2021.
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