Q&A · ESMA

Q&A on open interest thresholds in energy derivatives

Answered

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AI-generated Summary

To convert lot-based open interest thresholds (10,000 lots in Article 83(1)(b) of Delegated Regulation 2017/565, 300,000 lots in Article 57(1) MiFID II) into energy units, ESMA uses the monthly contract as one lot: 720 MWh for gas and base-load power and 264 MWh for peak-load power, with MMBTU and therm equivalents worked out.

Details

Reference	ESMA_QA_2439
Issuer	ESMA
Published	13 Feb 2025
Answered	13 Feb 2025
Submitted	13 Feb 2025
ESMA topics	Position reporting

Provisions it relates to

Article 57 MiFID II · Position limits in commodity derivatives and position management controls in commodity derivatives and derivatives of emission allowances
MiFID II
Explicit reference
Article 83 MiFID II · Refusal to cooperate
MiFID II
Explicit reference
MiFID II (whole act)
Explicit reference

Documents it refers to

Delegated actIn forceExplicit reference
Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryThe main MiFID II Delegated Regulation: defines key terms (such as investment advice, systematic internaliser, algorithmic and high-frequency trading, and direct electronic access) and sets detailed organisational requirements and operating conditions for investment firms, including compliance, conflicts of interest, remuneration, client information, suitability and appropriateness, best execution, client order handling, reporting to clients, record keeping and transaction-level obligations.