ESMA_QA_1519

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1519

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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 - net positions held by clearing members

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Question

Submission Date: 19 December 2016

Are the net positions held by clearing members usable for the purposes of determining the positions of their clients for the application of position limits under Article 57?

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ESMA Answer

Answer Date: 19-12-2016

[ESMA 70-872942901-36 Commodity derivatives Q&A, Q&A 2.8] No. Central counterparties determine net positions at the level of their clearing members, which usually encompass the long and short position of many different clients unless held in individually segregated accounts. A CCP may also see positions only for those contracts for which it provides a central counterparty service and not the EEOTC positions or any held at a CCP subject to interoperability. Position limits apply at the level of the individual person, and net positions held at clearing level must therefore be disaggregated.

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