Position limits for commodity derivative contracts

We have powers to establish position limits on commodity derivatives.

These limits are specified in the tables below and apply to the positions held by a person together with those held on its behalf at an aggregate group level (subject to the exemption for non-financial entities in regulation 17 of the MiFI Regs and article 8 of UK RTS 21).

The position limits apply subject to the section below on notes applicable to specific contracts.

We explain the terms used in the tables in the 'Notes on the data' section below. For the purposes of this direction, we refer to ‘persons’ as defined in the glossary of definitions in our Handbook.

The position limit exemptions application gateway is open to Non-Financial Entities (NFE). Position limit exemptions for risk-reducing positions are not restricted to a fixed quantity, thereby allowing for future variation in the commercial needs of the NFE. However, if there is a significant change in the commercial and trading activities of the NFE, it will need to submit a new application to the FCA. We ask for a minimum amount of data to understand the NFE’s business so that we can process applications efficiently.

On this page we list the commodity derivative contracts that we have identified as trading on a UK trading venue and their applicable position limits.

These position limits apply to contracts traded on trading venues and their economically equivalent OTC (EEOTC) contracts. The limits are set using the methodology in UK RTS 21.

Each commodity derivative contract has a separate limit for the spot month and other months' periods.

On a case-by-case basis, we will consider any contracts for aggregation, for example when these contracts are based on identical contract specifications. Where individual contracts are aggregated, a single overall limit will apply to the primary contract and incorporate those identified as mini, Balmo (‘Balance of Month’), mini-Balmo or other contracts. The specific contracts to be aggregated are identified in the spreadsheet* by their Venue Product Code (VPC). In performing the aggregation, any positions in mini or mini-Balmo contracts must be converted to match the lot size of the primary contract using the ratio specified in the table.

We may change a position limit if we deem it necessary. If this happens, we’ll show details of the new limit and its effective date in the tables and notes.

Please note that this is not a comprehensive list. Any other commodity derivatives traded on a UK trading venue which are not specifically identified in the tables by their VPC will have a limit of 2,500 lots.

For the avoidance of doubt, whilst a single position limit will apply to all positions in those contracts which are aggregated together, separate position reports are still required for each commodity derivative. This is required for each contract in which a position is held.

Please refer to the notes at the end of the table for further guidance.

Notes on the data

• All Position Limits apply with immediate effect unless otherwise stated.
• References to ‘trading venue’ encompass UK regulated markets, UK MTFs and UK OTFs, as defined under UK MiFIR.
• 'Definition of spot month' states the basis by which you determine whether the spot month or the other months’ limit applies to a position. The spot month limit applies to all positions covered by the spot month definition. It will usually be the 'next expiring contract' which will be determined by the contract specification published by the trading venue. Exceptions to this are explained in the table.
• TBA (to be announced) indicates a position limit is yet to be set. 
• ^ 'Whole spot month' is the full period until the next expiry date as stated in the contract specification, eg 2 or 3 calendar months.
• § 'Other' is the spot month period until the date of the next ‘Third Wednesday’ according to market practice of the London Metal Exchange.
• # the limit is stated in the quantity of the relevant unit of measurement of the primary contract. This is usually in the number of lots. It is also stated (in brackets) as a percentage of the position limit’s baseline. The baseline is the quantity specific to the contract from which the limit is calculated. This will be either deliverable supply or open interest, following UK RTS 21[2].
• † 'Calendar Week' is the full period of five sequential daily contracts until the next expiry date as stated in the contract specification.
• ‡ Conversion will be needed for contracts which are either Mini or Mini Balmo with a factor of 10 to match the primary contract.
• ## Position to be reported in Lots.

To apply the limits in a standardised way, where a ‘mini’ contract or other contract expressed in different units is aggregated, the position in those contracts must be converted into units of the primary contract to see if the limit is breached. The primary contract is the one whose VPC is listed first in the table under the column headed ‘Commodity Derivative Name (including associated contracts)’.

• Non-Financial Entities that have been given an exemption under Article 8 of UK RTS 21 and regulation 17 of the MiFI Regulations 2017 will have it applied by us to the specific contracts which were listed in their exemption application.
• If you would like further information on the position limit regime, you can contact the relevant trading venue for assistance.