CHAPTER III U.K. METHODOLOGY FOR COMPETENT AUTHORITIES TO CALCULATE POSITION LIMITS

SECTION II U.K. Factors relevant for the calculation of position limits

Article 18 U.K. The overall open interest(Article 57(3)(c) of Directive 2014/65/EU)

1. Where there is a large volume of overall open interest, competent authorities shall adjust the position limit downwards.

2. Where the open interest is significantly higher than the deliverable supply, competent authorities shall adjust the position limit downwards.

3. Where the open interest is significantly lower than the deliverable supply, competent authorities shall adjust the position limit upwards.