PART 3Position limits and position management controls in commodity derivatives
FCA duty to use F1Regulation (EU) 2017/591 to establish position limits and to review if market changes19.
(1)
The FCA must, unless regulation 25 applies, establish position limits under regulation 16 in accordance with F2Regulation (EU) 2017/591.
(2)
The FCA must review a position limit it has established under regulation 16 where there is—
(a)
a significant change in deliverable supply or open interest; or
(b)
any other significant change on the market, based on the FCA's determination of deliverable supply or open interest.
(3)
Where following a review the FCA believes that the position limit should be reset it must establish a new position limit under regulation 16.