The European Securities and Markets Authority proposed amendments to draft Regulatory Technical Standards under the Markets in Financial Instruments Directive II and Regulation to lower the position limits for liquid derivatives with agricultural products as an underlying to 2.5 percent. ESMA also proposed that where deliverable supply and open interest significantly diverge, other months’ positions limits should also be adjusted. Under MiFID II and MiFIR, national regulators will implement position limits for derivatives subject to general parameters established by ESMA. It is proposed that spot month position limits will be based on deliverable supply while other months (including all months) limits will be a function of total open interest. (Click here for details regarding proposed European position limits in the article, “ESMA Publishes Final Technical Standards for MiFID II” in the October 4, 2015 edition of Bridging the Week.)