On May 15, the European Securities and Markets Authority (ESMA) published an opinion on position limits proposed by the UK Financial Conduct Authority (FCA) in respect of ICE Low Sulphur Gasoil 1st Line Future and Option contracts. ESMA found that the contracts are consistent with the objectives established in the revised Markets in Financial Instruments Directive (MiFID II) and with the methodology developed for setting those limits. The opinion also concerns certain balance of the month, or “Balmo” contracts, which share contract specifications with the monthly contract and are priced according to the same underlying objectives.

The opinion follows the work plan agreed by ESMA and Member State national competent authorities (NCAs), including the FCA, under which position limits under MiFID II will be published by the NCAs prior to ESMA publishing an opinion on such limits (for further information, please see the September 29, 2017 edition of the Corporate & Financial Weekly Digest).

ESMA’s opinion is available here.