MiFID II: Down to the Wire on Commodity Position Limits

MiFID II: Down to the Wire on Commodity Position Limits

As MiFID II’s Jan. 3 go-live date draws closer, investment firms are rushing to implement systems that monitor position limits on commodity derivatives, though the majority of the limits are still unknown. FlexTrade’s Ivy Schmerken investigates.



As MiFID II’s Jan. 3 go-live date draws closer, investment firms are rushing to implement systems that monitor position limits on commodity derivatives, though the majority of the limits are still unknown.

Commodity derivatives participants are waiting for precise position limit rules under MiFID II on more than 100 contracts ranging from agriculture to energy and metals. But the lack of information on those limits is making compliance difficult, according to a recent webinar held by Energy Risk.

While commodity dealers and hedge funds have had position limits applied by exchanges and prime brokers, respectively, MiFID II requires end-of-day reporting and continuous monitoring to avoid intraday breeches across all EU venues and jurisdictions.

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FlexTrade is a global leader in broker-neutral, execution and order management trading systems for equities, FX, options, futures and fixed income. A pioneer in the field, FlexTrade introduced the first trading system that allowed clients to control and customize their proprietary algorithms while maintaining the confidentiality of their trading strategies. Change is the only constant in electronic trading. That's why FlexTrade is continuously upgrading its products and services. All can be tailored to meet the demanding requirements of a global client base of more than a 200 buy- and sell-side firms.
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