Schedule 2: Transitional amendments Part 4 – Amendments to the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 Paragraph 45: Position limits for commodity derivatives
Paragraph 45 of the Schedule introduces regulation 15A to the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (MiFI Regulations).
	Paragraph 1 of regulation 15A gives the FCA a rule-making power to require the operators of trading venues to set and enforce position limits and position management controls in respect of specific commodity derivative contracts, as well as classes of commodity derivatives. This will allow the FCA to establish a framework which will govern these regimes.
	Paragraph 2 of regulation 15A limits the ability of the FCA to exercise this rule-making power to instances where the FCA considers that doing so is necessary or expedient for advancing at least one of its operational objectives, as outlined in section 1B(3) of FSMA 2000.
	Paragraph 3 of regulation 15A explains that the FCA must have regard to its competitiveness and growth objective in section 1EB of FSMA 2000 when making rules under paragraph (1).
	Paragraph 4 of regulation 15A clarifies that the FCA can use its rule-making power to set out specific matters that trading venues need to consider when establishing position limits and management controls.
	Paragraph 5 of regulation 15A notes that the FCA can specify by rules certain circumstances when there will be exemptions from position limits and position management controls established under the framework set out in rules made under Paragraph 1.
	Paragraph 6 of regulation 15A clarifies the meaning of ‘position management controls’ which are covered by this rule-making power. It does so by giving a high-level, inexhaustive, list of arrangements which are encompassed by ‘position management controls’. This list includes monitoring the exposure of persons holding commodity derivative contracts, as well as requiring information from them about the size of the positions they have entered into.
	Paragraphs 7 through to 10 of regulation 15A outline the way in which various elements of the wider existing legislative framework apply to the rule-making power conferred by this regulation