The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017

[F1 FCA rules relating to position limits U.K.

15A.— (1) The FCA may by rules require relevant persons to establish and apply—

(a) position limits in respect of specified commodity derivatives, or commodity derivatives of a specified class, that are traded on a trading venue, and

(b) position management controls in relation to the trading of commodity derivatives.

(2) The power to make rules under paragraph (1) is exercisable only if the FCA considers that the rules are necessary or expedient for the purpose of advancing one or more of its operational objectives referred to in section 1B(3) of the Act.

(3) In making rules under paragraph (1) the FCA must have regard to its competitiveness and growth objective in section 1EB of the Act.

(4) Rules under paragraph (1) may provide for matters that relevant persons must have regard to when establishing position limits, or position management controls, under requirements imposed by the rules.

(5) Rules under paragraph (1) may provide for exemptions from the requirements imposed by the rules to such extent, and in such cases, as the rules may specify.

(6) The reference in paragraph (1)(b) to position management controls includes (for example) arrangements under which—

(a) the open interest positions of persons can be monitored;

(b) information and documentation can be obtained from persons about the size of positions entered into;

(c) requirements can be imposed on persons to terminate or reduce positions or to provide liquidity.

(7) The following provisions of Part 9A of the Act (rules and guidance) apply in relation to rules made by the FCA under this regulation as they apply in relation to rules made by the FCA under that Part of the Act, subject to the modification in paragraph (8)—

(a) section 137T (general supplementary powers);

(b) Chapter 2 (modification, waiver, contravention and procedural provisions), with the exception of sections 138D (actions for damages) and 138EA (matters to consider when making rules);

(c) section 141A (power to make consequential amendments of references to rules etc).

(8) Section 137T applies as if the reference to authorised persons were a reference to relevant persons to whom rules under this regulation apply.

(9) A requirement imposed by rules under this regulation is, for the purposes of section 296 of the Act (regulator’s power to give directions), to be treated as an obligation imposed under the Act.

(10) In this Part “relevant persons” means market operators and investment firms operating a trading venue.]

Textual Amendments

F1 Reg. 15A inserted (29.10.2024 for specified purposes) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 2 para. 45 (with s. 2(3)); S.I. 2024/1071, reg. 3(c)(ii)