The AFM has published position limits for all commodity derivatives traded on a trading platform located or managed in the Netherlands, which are outlined in the table below. De European Securities and Markets Authority (ESMA) has published "opinion" documents on position limits set under Article 5: 89a, first paragraph, Wft. These limits also apply to both economically equivalent OTC contracts (EEOTC), and to the positions held by a person and the positions that are held on his behalf at a group level.
If a position limit is (about to be) exceeded, the AFM may force a person not to enter into new agreements with regard to a commodity derivative to which that position limit applies or to reduce the volume of the position within a reasonable period set by the AFM.
Since January 3rd 2018the AFM monitors the position limits, with consideration of the section below entitled 'Notes applicable to specific contracts'.
Notes applicable to specific contracts
This list contains liquid commodity derivative contracts that are currently identified as being traded on a trading platform in the Netherlands. The position limit outlined in the table below applies to these derivatives. As can be seen it presents relevant market-, product-, and contract features as well as the date that a position limit becomes effective, since this list can be updated/extended over time a new position limits for other commodity derivatives can be included.
Each commodity derivative contract has a separate limit for the spot month and for the other months’ periods. The total net position in the commodity derivative has to be calculated by aggregating all positions that the person holds in the commodity derivative and in economically equivalent OTC derivative contracts based on Article 5: 89b of the Wft. The specific contracts to be aggregated are identified in the table below with their Venue Product Codes (VPC).The new and illiquid commodity derivatives which are traded on a trading platform in the Netherlands and which are not listed in the table below with their Venue Product Codes have a limit of 2,500 lots based on Article 15, first paragraph, under the delegated regulation (EU) 2017/591, unless the position limit has been set by another competent authority in any other member state.
After the AFM has set a position limit, that position limit may be subject to an adjustment if the deliverable stock or the total open interest has changed substantially or in case of another significant change on the market (Article 5: 89a, third paragraph, Wft). After an adjustment, the details of the new limit and the date that the position limit will become effective will be presented in the table below.
|Commodity Derivative Name||Effective date (dd-mm-yyyy)||Venue Market Identifier code (MIC)||Name of Trading Venue||Venue Product Codes (VPC)||Spot month single limit||Other months’ limit||Unit of measurement|
|Dutch power Physical Base Futures||03-01-2018||NDEX||ICE Endex||DPB, DPW||6.171.725
|Dutch power Physical Peak Futures||03-01-2018||NDEX||ICE Endex||DPA||2.262.967
|Belgian power Physical Base Futures||03-01-2018||NDEX||ICE Endex||BPB||4.218.480
|Dutch TTF Gas||03-01-2018||NDEX||ICE Endex||TFM, TFE||45.744.008 (25%)||164.372.396 (30%)||MWh|
|Italian PSV Gas||23-08-2018||NDEX||ICE Endex||IGA||54.762.300 (25%)||2.766.240