FIA Tech has announced the expansion of its Position Limits Databank service to encompass position limits for commodity derivatives as set by European regulators under MiFID II. The enhanced position limits service went live as planned ahead of the launch of MiFID II on January 3 2018.
To date, seven exchange groups have issued MiFID II limits which have been captured in FIA Tech’s Position Limit Databank. Additional exchanges will be added as their limit rules are submitted to regulators and approved.
Under MiFID II, exchanges and their National Competent Authorities are defining limits on commodity derivatives for the spot month and all contract months outside of the spot month. FIA Tech’s Position Limit Databank gives subscribers both the “liquid” contracts, which will have bespoke limits set per contract, along with the “new and illiquid” contracts which are given a general limits structure of 2,500 lots at the spot and other months level.
Now included in the MIFID II offering, FIA Tech has released trading calendar functionality. This new feature will include the date the next MIFID II designated liquid contracts go into spot along with the number of business days until the spot dates go into effect, giving subscribers an additional tool to accurately calculate spot and other month position limits.
With this enhanced capability, FIA Tech’s Position Limits Databank provides an essential service allowing firms to easily track and monitor aggregated positions globally, including economically equivalent positions across exchanges, to comply with the position limit regime defined in RTS 21 of MiFID II,” said Mark Davis, FIA Tech’s SVP of Strategy.
This is another step in our strategic plan to provide market participants and their technology providers with a consolidated golden source of reference data to improve efficiencies, reduce costs and create opportunity through standardization.
FIA Tech’s Position Limits Databank is a globally aggregated database that includes accountability levels, reporting levels, position limits, contract aggregation requirements, ratios, spot and other month details, diminishing contract indicators, mini contract multipliers, CFTC referenced contracts, and settlement types. As all these factors vary by venue and contract, FIA Tech has a team of analysts who proactively monitor information being published by exchanges and regulators to provide a comprehensive, consolidated, forward looking, and reliable data source of position limits.
FIA Tech’s Position Limits Databank and Equity Option Position Limits Databank provide daily coverage on more than 55,000 derivative contracts on 85 major global exchanges.