CHAPTER III

METHODOLOGY FOR COMPETENT AUTHORITIES TO CALCULATE POSITION LIMITS
SECTION II

Factors relevant for the calculation of position limits

The number of market participants(Article 57(3)(e) of Directive 2014/65/EU)
Article 19
1
Where the daily average number of market participants holding a position in the commodity derivative over a period of one year is high the competent authority shall adjust the position limit downwards.
2
By way of derogation to Article 14, competent authorities shall set the spot month and other months' position limit between 5 % and 50 % if:
a
the average number of market participants holding a position in the commodity derivative in the period leading up to the setting of the position limit is lower than 10; or
b
the number of investment firms acting as a market maker in accordance with Article 4(1)(7) of Directive 2014/65/EU in the commodity derivative at the time the position limit is set or reviewed is lower than 3.
For the purposes of the first subparagraph, competent authorities may establish different position limits for different times within the spot month period, the other months' period or for both periods.