Adoption of regulations on position limits for commodity derivatives

Rules mirroring the rules of MiFID II and MiFIR are now enshrined in Norwegian regulations empowering Finanstilsynet to establish position limits on the size of net positions which can be held in commodity derivatives. The position limits are established pursuant to the method set out in regulations on supplementary rules to the Norwegian MiFID II and MiFIR regulations being adopted by Finanstilsynet today.

The regulations on position limits for commodity derivatives set identical limits for illiquid commodity derivatives, and separate limits for each liquid commodity derivative. Finanstilsynet has drawn up a list of commodity derivatives traded on a trading venue in Norway and position limits applying to each commodity derivative.

ESMA has thus far not considered whether the position limits set are in conformity with Commission Regulation (EU) 2017/591. It is therefore possible that Finanstilsynet will change the limits after ESMA's review.