PART 3Position limits and position management controls in commodity derivatives
FCA duty to use ESMA methodology 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 the ESMA methodology.
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.