ESMA_QA_1518

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1518

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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: Position limits and short positions

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Question

Submission Date: 19 December 2016

How do limits apply to long and short positions?

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ESMA Answer

Answer Date: 19-12-2016

[ESMA 70-872942901-36 Commodity derivatives Q&A, Q&A 2.6] Position limits apply to net positions regardless of whether the net position is long or short. When calculating their positions, a person needs to aggregate their long and short holdings in spot contracts towards the spot month limit. They separately need to aggregate all their long and short positions for all other months towards the other months’ limit.

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