On January 25, the UK Financial Conduct Authority (FCA) published position limits on a further commodity derivative contract that is traded on a UK trading venue.
Further to the FCA’s last publication of position limits (as covered in the Corporate & Financial Weekly Digest edition of January 5, 2018), the limits will apply from March 31 to positions held for the bespoke Swiss Baseload Power contract (Ch Phy BLSws), which is traded on GFI Brokers Ltd., an organized trading facility. The spot month single limit proposed is 4,557 (3,281,350) (22.5%) and the other month limit proposed is 11,827 (8,515,350) (29.0%).
The FCA has explained that it has published the limits in advance of the required publication by the European Securities and Markets Authority (ESMA) of opinions on the limits. Therefore, the limits may change in light of an opinion by ESMA, or if the FCA decides a change is necessary.
The FCA’s webpage on position limits for commodity derivative contracts is available here.