Knowledge Base

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Questions

Which body is responsible for publishing the regulatory technical standards (RTS) for position limits in Europe?

The AMF
ESMA
The European Central Bank
The European Commission

What is the minimum open interest threshold for a commodity derivative contract to be subject to mandatory position limits under the 2022 revision?

100,000 lots
200,000 lots
300,000 lots
400,000 lots

What is the maximum fine that the AMF can impose for a breach of position limit rules?

€50 million
€100 million
€15 million
€25 million

What are the two distinct thresholds set by the competent authority for position limits on critical or significant derivative contracts?

A spot month limit and an all other months limit
A daily limit and a monthly limit
A limit for agricultural products and one for metals
A limit for long positions and one for short positions

Position limits apply to all types of commodity derivatives without exception.

True
False

Objectives of position limits under MiFID II

Click to see answer

Non-financial entities can always request an exemption from position limits without justification.

True
False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Central clearing via CCP
Systematic reporting to trade repositories
Prompt confirmation of non-cleared transactions
Daily collateral exchange
Categories:

Structural obligations imposed by EMIR

Risk mitigation techniques