EU position limits pose headaches for national regulators

Proposed Mifid II limits on thousands of commodity contracts worry some officials

fca-building
The UK's FCA has raised concerns about EU position limits proposals

Financial regulators in European Union member states will face a gargantuan task in implementing the sweeping new regime of commodity position limits being proposed as part of the new Markets in Financial Instruments Directive (Mifid II), lawyers and officials say.

The proposed limits regime, aimed at curbing speculative trading in commodity derivatives, would apply to every commodity derivatives contract traded in the EU – a much broader scope than the comparable position limits regime that US