ESMA_QA_1516

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1516

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Regulatory Context

Regulation : MIF2

Level 1 Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Position limits

Subject Matter: Economically Equivalent OTC contracts

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Question

Submission Date: 19 December 2016

What is a lot in the case of Economically Equivalent OTC contracts (EEOTC)?

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ESMA Answer

Answer Date: 19-12-2016

[ESMA 70-872942901-36 Commodity derivatives Q&A, Q&A 2.3] A significant number of OTC contracts are specified by reference to a quantity of the underlying commodity and not the standardised lot sizes of an exchange-traded derivative. Where an OTC contract is not defined in standardised lots the size of the contract should be calculated as a multiple of the standard unit of trading used by the trading venue for the commodity derivative to which the OTC contract is equivalent.

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This document was automatically extracted from the ESMA EMIR Q&A database.