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About Exchange Position Limits

Position Limits are the highest number of options or futures contracts an investor is allowed to hold on one underlying security. The limits are set by Exchanges and / or regulatory bodies to prevent the control and manipulation of the market by a few players, and limit excessive speculation that may destabilize the market.

The focus is typically on speculative positions and a number of commodity exchanges allow exemptions from these limits in cases of bona fide hedges and certain risk management positions to qualified traders and arbitrageurs.

Regulators in the U.S., Asia and Europe are currently considering whether changes are needed in the regulatory regimes that governs the application of Positions Limits.

Key developments include:

  • MiFID II position limits coming into force in January 2018

  • CFTC finalizing an expanded position limits regime

  • HK SFC proposing to enhance the position limit regime

Funds-Axis Position Limits Monitoring

We offer our clients a fully automated monitoring solution for Position Limits.

Key features include:

  • Easy implementation

  • Data provision for all Position limits (including spot, single month and all month limits)

  • Comprehensive documentation and analysis of all rules

  • Tracking of all regulatory developments and position limit changes

  • Comprehensive automated alerts, including against warning thresholds

  • Full coverage of all calculations, including:

– Calculation based on spot month, single month and all month
– Calculations on net futures-equivalent basis by contract
– Aggregation of contracts into one or more base contracts as set forth in the Table.
– Delta adjustment of options
– Calculations of options on both a “market-side” and “quadrant” basis

Exchanges Covered

  • ASX – Australian Stock Exchange

  • CBOE – Chicago Board Options Exchange

  • CME Group – CME, CBOT and Nymex

  • EUREX

  • HKEX – Hong Kong Futures Exchange (HKFX)

  • ICE – ICE Futures US (IFUS)

  • Japan Exchange Group (JPX) – Tokyo Stock Exchange & Osaka Stock Exchange

  • Euronext

  • Bursa Malaysia

  • Montreal Exchange / Bourse de Montréal

  • Nagoya Stock Exchange

  • Nasdaq OMX

  • KFE – Korea Futures Exchange

  • JSE – Johannesburg Stock Exchange (Derivatives)

  • SGX – Singapore Exchange

  • TFEX – Thailand Futures Exchange

TO FIND OUT MORE ABOUT OUR POSITION LIMITS SOLUTION, BOOK A DEMO OR CONTACT US FOR MORE INFORMATION.

+44 (0)28 9032 9736 CONTACT US