UK resists expansive view of Mifid II position limits

FCA suggests limits shouldn’t apply to OTC trades between non-EU entities

fca-building
FCA headquarters in London

UK regulators tasked with implementing the European Union's position limits regime for commodity derivatives have said the limits should not apply to over-the-counter trades executed outside the EU, disappointing advocates of the legislation who had envisioned a broad, extraterritorial reach for the limits regime.

Position limits are among the more controversial parts of the EU's new Markets in Financial Instruments Directive (Mifid II). Supporters say they are needed to prevent speculation in c