3A trading venue operator must establish a position limit in relation to:

1. (1)

   a commodity derivative listed in MAR 10 Annex 2R and traded on a trading venue it operates;

2. (2)

   any other contract traded on a trading venue it operates which is critical for the purposes of the functioning of the commodity derivatives markets in the UK, having regard to its characteristics, when notified to do so by the FCA; and

3. (3)

   any related contract as part of the position limit it imposes for the purposes of (1).

1. (1)

   3A trading venue operator must consider whether there are other contracts which:

   1. (a)

      offer a comparable economic exposure to that provided by a critical contract and may be used to circumvent the purpose of MAR 10.2.1AR; or

   2. (b)

      influence the pricing or settlement conditions of a critical contract.

2. (2)

   Where a trading venue operator identifies a contract to which (1) applies, it must treat that contract as if it were a related contract for the purposes of MAR 10.

3. (3)

   Where a trading venue operator identifies a contract to which (1) applies, it must promptly notify the FCA of the details of that contract.

3When a trading venue operator considers that a contract may amount to a critical contract and requires closer monitoring by it or the FCA for this purpose, it must promptly notify the FCA of the details of the contract having had regard to:

1. (1)

   the risk to the settlement method at contract expiry;

2. (2)

   the size of the commodity derivative market compared with the underlying commodity and the robustness of the reference price used to settle contracts;

3. (3)

   the type of underlying and the impact on non-financial end-users;

4. (4)

   the size of the market, including factors such as open interest, traded volumes, and the number and variety of market participants;

5. (5)

   changes in volatility and liquidity; and

6. (6)

   its use for circumventing the purpose of MAR 10.2.1AR.

3A trading venue operator must establish and apply a position limit no later than the date from when the contract becomes a critical contract.

3When setting a position limit in respect of a critical contract, a trading venue operator must have regard at least to:

1. (1)

   deliverable supply in the underlying commodity;

2. (2)

   aggregate open interest and its relationship with deliverable supply;

3. (3)

   maturity of the critical contract;

4. (4)

   volatility in the price of the commodity derivative and in the underlying commodity;

5. (5)

   liquidity, including:

   1. (a)

      aggregate traded volumes of the critical contract and the underlying of the critical contract;

   2. (b)

      aggregate traded volumes of the related contracts, related OTC contracts and related overseas commodity derivative contracts; and

   3. (c)

      the number, size and type of the market participants; and

6. (6)

   the ability of market participants to make or take delivery and the characteristics of the underlying commodity market, including transportation, delivery, storage and settlement of the commodity.

1. (1)

   3A trading venue operator must apply its position limits in respect of critical contracts to:

   1. (a)

      spot month contracts and other months’ contracts; and

   2. (b)

      the net positions held by a person, together with those held on its behalf, at an aggregate group level.

2. (2)

   A trading venue operator must require that a person determine the net position it holds in a commodity derivative for both spot month contracts and other months’ contracts.

3. (3)

   A trading venue operator must require that:

   1. (a)

      where a person holds both long and short positions in any critical contracts or related contracts, the person net those positions (and no other positions in other commodity derivatives) to determine its net position other than where (4) applies;

   2. (b)

      a position to which an exemption in MAR 10.2 applies is not aggregated for the purposes of (1)(b);

   3. (c)

      a parent undertaking determines its net position by aggregating its own net position and the net positions of each of its subsidiary undertakings except where (3)(d) applies; and

   4. (d)

      the parent undertaking of a manager of a collective investment undertaking must not aggregate the positions in commodity derivatives in any collective investment undertaking where it does not in any way influence the investment decisions in respect of opening, holding or closing those positions.

4. (4)

   A trading venue operator must not permit the netting of positions in relation to a related contract where it considers this will increase the likelihood of disorderly pricing or settlement conditions.

5. (5)

   Where (4) applies, a trading venue operator must inform the relevant members, participants or clients, and describe how their positions should be aggregated for the purposes of discharging their obligation to meet the position limit imposed by the trading venue operator in accordance with MAR 10.2.1AR.

3A trading venue operator must:

1. (1)

   publish its position limits and apply these on a non-discriminatory basis;

2. (2)

   maintain arrangements designed to enable it to ensure persons comply with position limits relating to a critical contract traded on its trading venue at all times, regardless of the location of the person at the time of entering into the position;

3. (3)

   ensure the position limits on a trading venue it operates remain appropriate at all times;

4. (4)

   review its position limits at least once every year and whenever there is a significant change in deliverable supply or open interest, or a change which significantly impacts the commodity derivatives market;

5. (5)

   establish and maintain a methodology for applying position limits in respect of critical contracts;

6. (6)

   notify the FCA prior to imposing a position limit unless it is not reasonably practicable to do so;

7. (7)

   consult with its members, participants or clients prior to setting or modifying a position limit unless it is not reasonably practicable to do so, in accordance with its rules; and

8. (8)

   publish in a clear and accessible manner a list of related contracts for each critical contract traded on its systems.

3A trading venue operator may determine that a non-financial entity’s position for the purposes of a position limit does not include a position it holds, or one held on its behalf, which is:

1. (1)

   objectively measurable as reducing risks directly relating to its commercial activity; and

2. (2)

   approved by the trading venue operator setting the position limit in accordance with:

   1. (a)

      the relevant criteria and methods in MAR 10.2.7R; and

   2. (b)

      the relevant procedure in MAR 10.2.9R to MAR 10.2.10R.

3A trading venue operator may make the determination in MAR 10.2.6R where it is satisfied that the following criteria are met:

1. (1)

   a position held by a non-financial entity:

   1. (a)

      reduces the risks arising from the potential change in the value of assets, services, inputs, products, commodities or liabilities that the non-financial entity or its group owns, produces, manufactures, processes, provides, purchases, merchandises, leases, sells, or incurs or reasonably anticipates owning, producing, manufacturing, processing, providing, purchasing, merchandising, leasing, selling or incurring in the normal course of its business; or

   2. (b)

      qualifies as a hedging contract pursuant to UK-adopted IFRS; and

2. (2)

   the position held by the non-financial entity is capable of being unwound in an orderly way.

3When making a determination in accordance with MAR 10.2.6R, a trading venue operator must require a non-financial entity to submit to it at least the following information, at the time of its application and in relation to the following 12 months, which demonstrates how the position reduces risks directly relating to the non-financial entity’s commercial activity:

1. (1)

   a description of the nature and value of the non-financial entity’s commercial activities in the commodity underlying the commodity derivative for which an exemption is sought;

2. (2)

   a description of the nature and value of the non-financial entity’s activities in the trading of and positions held in the relevant commodity derivatives traded on trading venues and in related OTC contracts;

3. (3)

   a description of the nature and size of the exposures and risks in the commodity which the non-financial entity has or expects to have as a result of its commercial activities and which are or would be mitigated by the use of commodity derivatives; and

4. (4)

   an explanation of how the non-financial entity’s use of commodity derivatives directly reduces its exposure and risks in its commercial activities.

3A qualifying risk-reducing position taken on its own or in combination with other derivatives is one, for the purposes of MAR 10.2.6R, for which the non-financial entity:

1. (1)

   describes the following in its internal policies:

   1. (a)

      the types of commodity derivative contract included in the portfolios used to reduce risks directly relating to commercial activity and their eligibility criteria;

   2. (b)

      the link between the portfolio and the risks that the portfolio is mitigating; and

   3. (c)

      the measures adopted to ensure that the positions concerning those contracts serve no other purpose than covering risks directly related to the commercial activities of the non-financial entity, and that any position serving a different purpose can be clearly identified; and

2. (2)

   is able to provide a sufficiently disaggregated view of the portfolios in terms of class of commodity derivative, underlying commodity, time horizon and any other relevant factors.

3A trading venue operator must require a non-financial entity to notify it:

1. (1)

   promptly if there is a significant change to the nature or value of the non-financial entity’s commercial activities or its trading activities in commodity derivatives, and the change is relevant to the information required in MAR 10.2.9R;

2. (2)

   promptly of a breach of any condition relating to an exemption; and

3. (3)

   in any event, on an annual basis, of its intention to rely on the exemption or otherwise, and supplying any changes to the information previously submitted in accordance with MAR 10.2.9R.

3A trading venue operator must notify the FCA:

1. (1)

   promptly of an exemption granted to a non-financial entity in accordance with MAR 10.2.6R, including any conditions such as an exemption ceiling attached to the exemption; and

2. (2)

   on an annual basis of all exemptions from position limits, granted by it to non-financial entities, including:

   1. (a)

      any exemption ceilings;

   2. (b)

      positions that exceeded those exemption ceilings; and

   3. (c)

      steps taken to address resulting risks.

3A trading venue operator must review exemptions from position limits granted to non-financial entities:

1. (1)

   at least on an annual basis; and

2. (2)

   whenever it receives a notification as described in MAR 10.2.11R.

3A trading venue operator may determine that a financial entity’s position for the purposes of a position limit does not include a position it holds or one held on its behalf for the purposes of enabling a non-financial entity to benefit from the hedging exemption.

3A trading venue operator may determine that a financial entity’s (A’s) position for the purposes of a position limit does not include a position it holds or one held on its behalf when it:

1. (1)

   arises under a commodity derivative traded on a trading venue; and

2. (2)

   is entered into by A on a trading venue for the purpose of off-setting the risk arising from a contract with a non-financial entity (B) facilitating hedging activity by B.

3A trading venue operator may only make the determination with regard to MAR 10.2.15R when a financial entity has obtained written confirmation from a non-financial entity that the position entered into facilitates hedging activity.

3When making a determination in accordance with MAR 10.2.14R or MAR 10.2.15R, a trading venue operator must require a financial entity to submit to it at least the following information at the time of its application and where possible in relation to the following 12 months:

1. (1)

   a description of the financial entity’s risk-mitigation services in the commodity underlying the commodity derivative for which an exemption is applied; and

2. (2)

   a description of the financial entity’s trading activity and positions in commodity derivatives for which an exemption is applied, including in OTC commodity derivatives that relate to providing risk-mitigation services.

3A trading venue operator must require a financial entity to notify it:

1. (1)

   promptly if there is a significant change relevant to the information set out in MAR 10.2.18R; and

2. (2)

   on an annual basis of its intention to rely on the exemption or otherwise, and supplying any changes to the information previously submitted in accordance with MAR 10.2.18R, including information relating to the period for the next 12 months.

3A trading venue operator must notify the FCA:

1. (1)

   promptly of an exemption granted to a financial entity in accordance with MAR 10.2.14R or MAR 10.2.15R, including any conditions such as an exemption ceiling attached to the exemption; and

2. (2)

   on an annual basis of all exemptions from position limits granted by it to financial entities, including:

   1. (a)

      exemption ceilings;

   2. (b)

      positions that exceeded those exemption ceilings; and

   3. (c)

      steps taken to address resulting risks.

3A trading venue operator must review all exemptions from position limits granted to financial entities:

1. (1)

   at least on an annual basis; and

2. (2)

   whenever it receives a notification as described in MAR 10.2.19R(1).

3A trading venue operator may determine that a position limit does not apply to a position held by a person for a position that is objectively measurable as resulting from a transaction consistent with obligations to provide liquidity on a trading venue.

3A trading venue operator may make the determination in MAR 10.2.22R where:

1. (1)

   it receives an application from a person for these purposes;

2. (2)

   the obligations to provide liquidity are clearly defined and relate to observable metrics of market quality, including depth and tightness of the spread;

3. (3)

   the position arises from discharge of the person’s obligation as a liquidity provider; and

4. (4)

   the exemption is temporary in duration and the person reduces its position as soon as reasonably practicable prior to the expiry of the contract.

3A trading venue operator must ensure that an application for the purposes of MAR 10.2.22R provide as a minimum a description of the liquidity the applicant provides in respect of the commodity derivatives for which an exemption from a position limit is being requested.

3A trading venue operator must notify the FCA;

1. (1)

   promptly of an exemption granted to it in accordance with MAR 10.2.22R, including any conditions such as an exemption ceiling attached to the exemption; and

2. (2)

   on an annual basis of all exemptions from position limits granted by it to in accordance with MAR 10.2.22R, including:

   1. (a)

      any exemption ceilings;

   2. (b)

      positions that exceeded those exemption ceilings; and

   3. (c)

      steps taken to address resulting risks.

3A trading venue operator must:

1. (1)

   provide the FCA, upon request, with such information as the FCA may reasonably require to enable a fuller understanding of the basis for granting an exemption to which MAR 10.2 applies;

2. (2)

   store information in an easily retrievable way that is accessible for future reference by the FCA for the purposes of (1); and

3. (3)

   ensure that its systems can identify:

   1. (a)

      when an exemption under MAR 10.2 is being used in relation to a market participant’s position in a commodity derivative; and

   2. (b)

      which exemption is being used.

1. (1)

   3A trading venue operator may establish an exemption ceiling for the purposes of any of the exemptions in MAR 10.2 where to do so would mitigate the risk that large positions otherwise pose to the orderly pricing and settlement of a critical contract.

2. (2)

   A trading venue operator must explain in its rules how it will apply and determine an exemption ceiling, including how and when it may be amended.

2A UK market operator is subject to MAR 10.3.3R as if it were a UK firm operating a multilateral trading facility or an OTF and references to an MTF are to a regulated market or an MTF that it operates.

1. (1)

   This rule applies to a UK firm operating a multilateral trading facility or an OTF and a UK branch of a third country investment firm operating a multilateral trading facility or an OTF.

2. (2)

   A firm must apply position management controls which enable an MTF or OTF at least to:

   1. (a)

      monitor the open interest positions of persons;

   2. (b)

      access information, including all relevant documentation, from persons about:

      1. (i)

         the size and purpose of a position or exposure entered into;

      2. (ii)

         any beneficial or underlying owners;

      3. (iii)

         any concert arrangements; and

      4. (iv)

         any related assets or liabilities in the underlying market;

   3. (c)

      require a person to terminate or reduce a position on a temporary or permanent basis and unilaterally to take appropriate action to ensure the termination or reduction if the person does not comply; and

   4. (d)

      require a person to provide liquidity back into the market at an agreed price and volume on a temporary basis with the express intent of mitigating the effects of a large and dominant position.

3. (3)

   The position management controls in paragraph (2) must take account of the nature and composition of market participants and of the use they make of the contracts admitted to trading and must:

   1. (a)

      be transparent;

   2. (b)

      be non-discriminatory; and

   3. (c)

      specify how the controls apply to persons.

4. (4)

   A firm must inform the FCA of the details of the position management controls in relation to each MTF or OTF it operates which trades commodity derivatives.

2A trading venue operator must apply additional position management controls in relation to the critical contracts and related contracts traded on its systems:

1. (1)

   ensuring the effective and timely identification of substantial positions, including positions subject to an exemption referred to in MAR 10.2; and

2. (2)

   taking steps to manage excessive positions or positions which impair orderly pricing and settlement conditions, including reducing or terminating these where a person fails to comply with a request to manage their positions further to exceeding an accountability threshold, exemption ceiling or otherwise.

1. (1)

   2A trading venue operator must apply MAR 10.3.3CR to spot month contacts traded on its systems.

2. (2)

   A trading venue operator must consider whether it is necessary to apply MAR 10.3.3CR to other months’ contracts traded on its systems in order to maintain an orderly market.

1. (1)

   2A trading venue operator must set accountability thresholds below position limits enabling early identification of substantial positions and risk of breaching a position limit.

2. (2)

   A trading venue operator must ensure that its accountability thresholds are adequate, transparent, non-discriminatory, clear and accessible to market participants, at all times. It must also specify how the controls apply to persons.

3. (3)

   A trading venue operator must keep the adequacy of its accountability thresholds under review on a regular basis and notify the FCA promptly of these reviews, including:

   1. (a)

      whenever there is a significant change to either the position limit or one or more of the factors in MAR 10.3.3ER; and

   2. (b)

      at least on an annual basis.

4. (4)

   A trading venue operator must explain when notifying the FCA in accordance with (3):

   1. (a)

      how it had regard to the factors in MAR 10.3.3ER; and

   2. (b)

      the relationship between the accountability threshold and corresponding position limit.

5. (5)

   A trading venue operator, for the purposes of its annual notification under (3)(b), must inform the FCA of:

   1. (a)

      how many times an accountability threshold has been exceeded, including the duration of each occurrence;

   2. (b)

      the identity of the market participant; and

   3. (c)

      the steps then taken by the trading venue operator to address the risks identified.

6. (6)

   A trading venue operator must in respect of critical contracts traded on a trading venue it operates:

   1. (a)

      identify the related contracts; and

   2. (b)

      notify the FCA promptly of the details of the contracts in paragraph (a).

2A trading venue operator, when setting accountability thresholds, must establish a methodology that has regard at least to:

1. (1)

   the level of the position limit and the factors determining the position limit;

2. (2)

   the need to ensure increasing positions can be investigated before risks crystallise;

3. (3)

   whether the volume and any required remedial action of accountability threshold excesses indicates that the control is effective in providing early warning of prospective position limit breaches and enabling action; and

4. (4)

   market concentration and concentrated trading activity.

2A trading venue operator, when setting accountability thresholds, may exclude positions, to which an exemption in MAR 10.2 applies, where an exemption ceiling is in place.

1. (1)

   2A trading venue operator must develop a risk assessment framework to enable it to discharge its obligations under MAR 10.3.3AR and to determine the need for additional reporting.

2. (2)

   The risk assessment framework must have regard at least to:

   1. (a)

      exemptions determined in accordance with MAR 10.2, including any conditions attaching to exemptions in the form of exemption ceilings or otherwise;

   2. (b)

      accountability thresholds;

   3. (c)

      whether a person otherwise holds a concentrated position in the physical or commodity derivatives markets which presents a material risk to the functioning of a commodity derivatives market, including the risk of market abuse and to orderly pricing and settlement conditions;

   4. (d)

      the price and liquidity of and other relationships between:

      1. (i)

         critical contracts; and

      2. (ii)

         related OTC contracts or related overseas commodity derivative contracts; and

   5. (e)

      the relevance of (d) to the position management of critical contracts traded on a trading venue it operates.

1. (1)

   2A trading venue operator must have the power to require additional reporting to it by a member or participant (A) acting on its behalf or on behalf of a client (B) to enable it to discharge its obligation under (2).

2. (2)

   A trading venue operator must obtain additional information from A or B as it determines necessary to ensure the proper monitoring of risks to its markets and to protect orderly pricing and settlement conditions in relation to the critical contracts or related contracts traded on its systems.

3. (3)

   In discharging its obligations under (2), a trading venue operator must consider whether to require additional reporting in relation to OTC positions.

4. (4)

   For the purposes of (3), a trading venue operator may consider the size of the relevant OTC derivatives market, the potential impact that market may have on the orderly functioning of the relevant market for the critical contract traded on its systems and the position management controls it operates.

5. (5)

   A trading venue operator must notify the FCA promptly when and how it decides to exercise its power to require additional reporting.

1. (1)

   2A trading venue operator may require that additional information relating to the price or delivery of a critical contract or related contract form part of additional reporting when MAR 10.3.3HR applies, including at least related OTC contracts positions, and also where relevant:

   1. (a)

      related overseas commodity derivative contracts positions;

   2. (b)

      trades in the underlying commodity of the critical contract;

   3. (c)

      trades used to settle commodity futures, including prices published by price reporting agencies; and

   4. (d)

      inventories, storage and infrastructure integrity at locations where deliveries are made.

2. (2)

   A trading venue operator may seek information about inventory, storage and infrastructure integrity from other data sources in addition to the position holder subject to additional reporting imposed further to MAR 10.3.3HR.

3. (3)

   A trading venue operator must inform its members, participants or clients of related OTC contracts and, where relevant, related overseas commodity derivative contracts to which additional reporting applies and the form and frequency of that reporting.

1. (1)

   2A trading venue operator must use the information referred to in MAR 10.3 and the reported information in MAR 10.4 to perform market risk analysis.

2. (2)

   The market risk analysis must include at least:

   1. (a)

      an identification of risks arising from the underlying physical commodity, related OTC contracts and related overseas commodity derivative contracts markets in relation to their impact on critical contracts and related contracts traded on a trading venue it operates; and

   2. (b)

      how those risks are being managed by the trading venue operator.

3. (3)

   A trading venue operator must:

   1. (a)

      make available its market risk analysis to the FCA on a regular basis and, upon request, data underlying the analysis; and

   2. (b)

      store information in an easily retrievable way that is accessible for future reference by the FCA for the purposes of (3)(a).

4. (4)

   A trading venue operator must make available its market risk analysis to the FCA:

   1. (a)

      whenever there is a significant change in market risk, having regard to size or concentration of positions, settlement or delivery and underlying commodity markets; and

   2. (b)

      at least on an annual basis.

2When additional reporting applies, a trading venue operator may consider the following factors as part of its monitoring and oversight:

1. (1)

   historic and anticipated position sizes and risk management capabilities of the individual markets or participants;

2. (2)

   the extent and quality of the individual member or participant’s engagement with the trading venue operator and response to its inquiries;

3. (3)

   where a contract is physically deliverable, the complexity of the delivery process and a position holder’s expertise in taking delivery of the underlying commodity; and

4. (4)

   how an individual member or participant’s positions compare with other position holders.

2A trading venue operator must notify the FCA prior to implementation of each of the following and their subsequent modification:

1. (1)

   the risk assessment framework, additional reporting and market risk analysis;

2. (2)

   accountability thresholds;

3. (3)

   governance arrangements to be followed for adoption and continuing review of position limit setting, the risk assessment framework, accountability thresholds and market risk analysis, including allocation of senior management responsibility, policies for managing conflicts, systems and controls, and board oversight;

4. (4)

   the methodology for and setting of position limits and accountability thresholds, including the identification of related contracts and positions not eligible for netting;

5. (5)

   the list of related contracts, related OTC contracts and, where relevant, related overseas commodity derivative contracts;

6. (6)

   policies and procedures relating to:

   1. (a)

      the granting of exemptions in MAR 10.2, including the approach to the setting of exemption ceilings; and

   2. (b)

      position limit breaches, including resolution and access to enforcement tools; and

7. (7)

   arrangements for the sharing of information with relevant CCPs.

2A trading venue operator (A) must exercise reasonable endeavours to identify and determine:

1. (1)

   any related OTC derivative; or

2. (2)

   any commodity derivative traded on an overseas trading venue:

   1. (a)

      which provides a comparable economic exposure to a critical contract or related contract traded on a trading venue A operates, including where its underlying has the same commodity for delivery at a location specified in the critical contract; or

   2. (b)

      the settlement price of which is linked to or capable of materially influencing the settlement price of a critical contract or related contract traded on a trading venue A operates.

5A trading venue operator must send the FCA a weekly report regarding the aggregate positions held at the close of business of each week, no later than 5.30pm on Wednesday of the following week.

5A trading venue operator must submit a weekly report to the FCA as soon as possible and no later than 5.30pm on Thursday of that week, where any of Monday, Tuesday or Wednesday of the week in which that report is to be submitted is not a working day.

1. (1)

   5A trading venue operator must prepare a weekly report separately for each commodity derivative and emission allowance traded on its trading venue in accordance with the formats set out in the tables in MAR 10 Annex 3R.

2. (2)

   A weekly report must contain:

   1. (a)

      The aggregate of all positions held by the different persons in each of the categories set out in MAR 10 Annex 3R in an individual commodity derivative or emission allowance traded on that trading venue; and

   2. (b)

      all positions across all maturities of all contracts.

3. (3)

   A trading venue operator must submit to the FCA a weekly report in a common standard XML format.

5A trading venue operator must submit to the FCA a breakdown of the positions referred to in MAR 10.4.8D by means of a daily position report in:

1. (1)

   common standard XML format; and

2. (2)

   the format set out in the tables in MAR 10 Annex 4R.

1. (1)

   1This rule applies to a UK firm operating a multilateral trading facility or an OTF and a UK branch of a third country investment firm operating a multilateral trading facility or an OTF.

2. (2)

   A firm must make public and provide to the FCA3a weekly report with the aggregate positions held by the different categories of persons for the different commodity derivatives or emission allowances traded on the trading venue, where those instruments meet the criteria of MAR 10.4.3AR5, specifying:

   1. (a)

      the number of long and short positions held by such categories;

   2. (b)

      changes in those positions since the previous report;

   3. (c)

      the percentage of the total open interest represented by each category; and

   4. (d)

      the number of persons holding a position in each category, as specified in MAR 10.4.4R.

3. (3)

   The firm must provide the FCA with a complete breakdown of the positions held by all persons, including the members or participants and clients, as well as those of their clients until the end client is reached, on the trading venue on a daily basis.

4. (4)

   For the weekly report mentioned in (2) above, the firm must differentiate between:

   1. (a)

      positions which are subject to the exemptions in MAR 10.2, identifying the relevant exemption by reference to the non-financial entity, pass-through hedging or liquidity provider exemption, as applicable5; and

   2. (b)

      other positions.

   5

   3

1. (1)

   5For the purpose of weekly reports, the obligation for a trading venue operator to make public such a report applies when both of the following 2 thresholds are met:

   1. (a)

      20 open position holders exist in a given contract on a given trading venue; and

   2. (b)

      the absolute amount of the gross long or short volume of total open interest, expressed in the number of lots of the relevant commodity derivative, exceeds a level of 4 times the deliverable supply in the same commodity derivative, expressed in number of lots.

2. (2)

   Where the commodity derivative does not have a physically deliverable underlying asset and for emission allowances, (1)(b) does not apply.

3. (3)

   The threshold set out in (1)(a) applies in aggregate on the basis of all of the categories of persons regardless of the numbers of position holders in any single category of persons.

4. (4)

   For contracts where there are fewer than 5 position holders active in a given category of persons, the number of position holders in that category need not be published.

5. (5)

   For contracts that meet the conditions set out (1) for the first time, trading venues must publish the contracts’ first weekly report as soon as it is feasibly practical, and in any event no later than 3 weeks from the date on which the thresholds are first triggered.

6. (6)

   Where the conditions set out in (1) are no longer met, trading venues must continue to publish the weekly reports for a period of 3 months. The obligation to publish the weekly report no longer applies where the conditions set out in (1) have not been met continuously upon expiry of that period.

1A firm must classify persons holding positions in commodity derivatives or emission allowances according to the nature of their main business, taking account of any applicable authorisation or registration, as:

1. (1)

   investment firms or credit institutions; or

2. (2)

   investment funds, either as a UCITS, or an AIF or an AIFM; or

3. (3)

   other financial institutions, including:

   1. (a)

      insurance undertakings and reinsurance undertakings as defined in the Solvency II Directive; and

   2. (b)

      institutions for occupational retirement provision as defined in Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement; or

4. (4)

   commercial undertakings; or

5. (5)

   in the case of emission allowances, operators with compliance obligations under the Emission Allowance Trading Directive or the trading scheme order 2020.4