rec_16

(16) The current position limit regime also does not recognise the unique characteristics of securitised derivatives. Securitised derivatives are transferable securities within the meaning of point (c) of point (44) of Article 4(1) of Directive 2014/65/EU. The securitised derivatives market is characterised by a large number of different issuances, each one registered with the central securities depository for a specific size, and any possible increase follows a specific procedure duly approved by the relevant competent authority. That is in contrast to commodity derivative contracts, for which the amount of open interest, and thereby the size of a position, is potentially unlimited. At the time of issue, the issuer or the intermediary in charge of the distribution of the issuance holds 100 % of the issue, which challenges the very application of a position limit regime. In addition, most securitised derivatives are then ultimately held by a large number of retail investors, which does not raise the same risk of abuse of a dominant position or to orderly pricing and settlement conditions as for commodity derivative contracts. Moreover, the notion of spot month and other months, for which position limits are to be set under Article 57(3) of Directive 2014/65/EU, is not applicable to securitised derivatives. Securitised derivatives should therefore be excluded from the application of position limits and reporting requirements.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.