On June 15, the Autorité des Marches Financiers (AMF) published a statement that the reporting obligations position limits for agricultural commodity derivatives proposed in the Separation and Regulation of Banking Activities Act of July 26, 2013, had been approved by a decree of the Minister of the Economy on May 14 (AMF Statement). The reporting obligations and position limits go into effect on July 1.
The reporting obligations apply to anyone holding agricultural commodity derivatives on an AMF-regulated market, a French multilateral trading facility or on a foreign market that permits trading in contracts that result in delivery in France. A holder of a position is not required to report, however, if the position has been reported to the AMF via the clearinghouse.
The position limit obligations apply to financial instruments traded on an AMF-regulated market. These six underlyings are:
- future no. 2 milling wheat;
- future no.3 milling wheat;
- future rapeseed;
- future maize;
- future rapeseed oil; and
- future rapeseed-meal.
The AMF will consider granting an exemption to the position limits provided the relevant person can demonstrate that their position has been held for hedging purposes. The exemption requires the agreement of the clearinghouse and, where necessary, the market operator.
The AMF will publish a weekly aggregate report on the positions traded on an AMF-regulated market or on a French multilateral trading facility being declared daily to the regulator by holders or the clearinghouse.
A copy of the AMF Statement can be found here.