The AFM must determine position limits for all commodity derivatives that are primarily (i.e. largest trading volume) traded in the Netherlands. The limits apply to commodity derivatives that are traded on trading venues and to economically equivalent OTC contracts. When the position limit threatens to be exceeded, the AFM can oblige a person not to conclude any new contracts or to reduce the size of the position.
The AFM will set the position limits in the fall of 2017. ESMA has determined the bandwidth within which the position limits are to be set in level-2 regulations.