[ESMA70-155-13072 ] Opinion on position limits on Milling Wheat

ESMA issued an opinion regarding the position limits for Euronext Milling Wheat No. 2 futures and options contracts set by AMF (eventid=20981). ESMA evaluated whether the new position limits proposed by AMF are in line with the methodology established in RTS 21a and consistent with the objectives of Article 57 of MiFID II. The Euronext Milling Wheat No. 2 contract is the benchmark for the European underlying physical market in milling wheat, meeting specific minimum requirements.
The AMF set two position limits for the spot month, and two position limits for the other months. The limit for the spot month is set at 14.6% of the deliverable supply, equivalent to 70,000 lots at the start of the spot month, and 4.2% of the deliverable supply, equivalent to 20,000 lots in the last 12 trading days before the expiry of the spot month. The limit for the other months is set at 19.9% of the open interest corresponding to 100,000 lots, except for the last 21 days before the spot month expiry where the limit is set at 23.8% of the open interest, representing 120,000 lots.
ESMA found the new position limits to be consistent with the methodology for calculation of position limits established in RTS 21a and in line with the objectives of Article 57 of MiFID II. As a result, the previous position limits set by the AMF will be replaced by these new limits. This assessment is significant because it provides clarity and transparency for market participants, ensuring that position limits are set in a consistent and effective manner, promoting market integrity and reducing the risk of market abuse.