EU · MiFID II · TITLE IV POSITION LIMITS AND POSITION MANAGEMENT CONTROLS IN COMMODITY DERIVATIVES AND REPORTING
Article 58 MiFID IIPosition reporting by categories of position holders
Trading venues trading commodity or emission allowance derivatives must publish weekly reports of aggregate positions by category of holder (two reports where options trade) above minimum thresholds, send them to their authority and ESMA for central publication, and give their authority a daily breakdown of all positions. Firms trading these derivatives OTC must report daily positions in economically equivalent contracts down to the end client, and members must report their positions to the venue; securitised commodity derivatives are excluded.
Amendments and application dates
| Amending act | Change | Applies from |
|---|---|---|
| Directive (EU) 2021/338 | Text amended; Text inserted | by 28 Feb 2022 |
| Directive (EU) 2024/790 | Text inserted; Text amended | 29 Sept 2025 |
Level 2: delegated and implementing acts
- ITSIn forceLegal basis
AI summaryAmends Implementing Regulation 2017/1093 on the format of position reports to remove securitised derivatives relating to commodities or C(10) underlyings, which the 2021 amendments to Article 58 MiFID II took out of position reporting.
- Delegated actIn forceLegal basis
AI summaryAmends Article 83 of Delegated Regulation 2017/565 on the thresholds for weekly commodity derivative position reports: instead of comparing open interest with deliverable supply, venues must publish them where combined open interest in spot and other months contracts reaches 10,000 lots, and must leave out a category of holders with fewer than five active position holders to protect confidentiality.
- ITSIn forceLegal basis
AI summaryITS setting the format of weekly position reports by trading venues and daily position reports by investment firms in commodity derivatives and emission allowances under Article 58 MiFID II, breaking positions down by category of holder and into risk-reducing and other positions.
- ITSIn forceLegal basis
AI summaryITS on the format and timing of position reports in commodity derivatives and emission allowances under Article 58 MiFID II, setting a common deadline for trading venues to send ESMA their published weekly position reports so that ESMA can publish them centrally each week.
- Delegated actIn forceLegal basis
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.
Level 3: ESMA Q&As, guidelines and opinions
- Q&AAnsweredExplicit reference · 90%
AI summaryOnly investment firms trading commodity derivatives or emission allowance derivatives outside a trading venue, in economically equivalent OTC contracts, must submit position reports under Article 58(2) MiFID II.
- Q&AAnsweredExplicit reference · 90%
AI summaryAsked whether Article 58(2) position reports must include both venue-traded positions and economically equivalent OTC contracts. ESMA deleted the Q&A in December 2025, noting that Article 58(2) itself now specifies that only economically equivalent OTC positions are included.
- Q&AAnsweredInferred · 90%
AI summaryNon-financial and financial entities must flag positions accurately as hedging or speculative in position reports, following Article 7 of RTS 21a, even if they have not applied for a hedging exemption; mandatory liquidity provision positions must also be flagged accurately.
- Q&AAnsweredInferred · 95%
AI summaryESMA explains which firms fall in each ITS 4 category for the weekly Commitments of Traders reports (investment firms or credit institutions, investment funds, other financial institutions, commercial undertakings and EU ETS compliance operators), with members categorising themselves and their clients and third-country entities classified under a separate ESMA opinion.
- Q&AAnsweredExplicit reference
AI summarySecuritised derivatives with a commodity underlying are transferable securities under Article 4(1)(44)(c) MiFID II and commodity derivatives under Article 2(1)(30) MiFIR, whereas exchange-traded commodities are debt instruments outside that definition and outside position limits; ESMA lists typical features to tell them apart, and notes securitised derivatives are no longer subject to position limits or position reporting.
- Q&AAnsweredInferred · 85%
AI summaryWhether economically equivalent contracts on a third-country venue count as EEOTC for position limits and reporting depends on whether ESMA lists that venue in the annex to its opinion; contracts on unlisted venues are EEOTC, and participants should alert their competent authority so the venue can be assessed.
- Q&AAnsweredInferred · 90%
AI summaryClients must ensure their positions are correctly described as hedging or speculative in Article 58 position reports; they may give their investment firm a standing instruction to treat defined positions one way unless told otherwise, and should have reports adjusted if they reassign trades later.
- Q&AAnsweredInferred · 90%
AI summaryWhere a chain of investment firms trades for clients, each must report the full breakdown of positions down to the end client, but duplicate reports should be avoided, for example by one firm reporting for another under an outsourcing arrangement in which the outsourcing firm stays responsible.
- Q&AAnsweredInferred · 90%
AI summaryPosition quantities must be reported in the unit the competent authority uses for that contract's position limit; for contracts on the same underlying with different delivery periods, limits are set in units of the underlying, so positions are reported in those units rather than lots.
- Q&AAnsweredInferred · 90%
AI summaryPositions in daily or weekly contracts delivering entirely within the spot month are reported as spot month ('SPOT'); weekly, quarterly or annual contracts whose delivery straddles the spot month and later months are reported as other months ('OTHR').
- Q&AAnsweredInferred · 90%
AI summaryInvestment firms may outsource daily position reporting under Article 58(2) MiFID II to a third party, but remain responsible for the reports and must meet MiFID II's outsourcing requirements.
- Q&AAnsweredInferred · 90%
AI summaryA broker trading on a matched principal basis in venue-traded or economically equivalent OTC commodity derivatives is subject to position reporting and must report positions on own account and for clients, since it may end up holding a position.
- Q&AAnsweredInferred · 95%
AI summaryEnd-of-day zero positions need not be reported to the competent authority under Article 58(2) MiFID II, except the first time an open position falls to zero after a non-zero position was reported.
- Q&AAnsweredExplicit reference · 90%
AI summaryTrading venues should send ESMA weekly position reports under Article 58(7) MiFID II only for contracts meeting the conditions in Article 83 of Delegated Regulation 2017/565; they may publish other contracts on their own websites.
- Q&AAnsweredInferred · 90%
AI summaryPositions in C(10) instruments must be reported only where their underlyings fall within the position limits regime, since daily position reporting exists to monitor compliance with those limits.
- Q&AAnsweredInferred · 95%
AI summaryTrading venues and investment firms must submit position reports under Articles 58(1)(b) and 58(2) MiFID II to the competent authority by 22:00 CET on T+1.
- Q&AAnsweredInferred · 95%
AI summaryPosition reports under Article 58(2) MiFID II must identify every client down to the end client, using LEIs for legal persons and passport number or CONCAT for non-EU individuals; this cannot be waived, so a firm whose clients cannot be identified because of non-EU data protection or secrecy laws is not compliant.
- Q&AAnsweredInferred · 85%
AI summaryFor position reporting, trading venues should use the segment MIC under which the commodity derivative trades, or their operating MIC if they have no segment MIC.
- Q&AAnsweredInferred · 75%
AI summaryA parent of a fund or its management company need not aggregate the fund's commodity derivative positions if it has no influence over its investment decisions (positions are then reported per fund LEI); if it does influence them, it must aggregate, and it must be able to justify its self-assessment.
- Q&AAnsweredInferred · 90%
AI summaryWhere an investment firm's end client is a non-investment firm serving others, the firm's position report should cover both the end client's own positions and those it holds for third parties, ideally reported separately and entity by entity, though the end client has no obligation to disaggregate; every holder remains subject to position limits.
- Q&AAnsweredInferred · 70%
AI summaryPositions an investment firm holds on behalf of clients count, and are reported, only as positions of the person for whom they are held; they are not added to or netted against the firm's own positions.
- OpinionPublishedESMA rulebook
AI summaryESMA opinion (ESMA70-156-6046) on how trading venues should classify third-country financial entities into the categories of position holders in the weekly commodity derivative position reports under Article 58 MiFID II, based on the activities they carry out, with authorities expected to ensure the classification is reflected in reports by 12 October 2022.
- Q&ALegacy Q&A documentESMA rulebook
AI summaryESMA's consolidated legacy Q&A document (ESMA70-872942901-36, last updated 23 September 2022) on commodity derivatives under MiFID II and MiFIR, covering position limits, the ancillary activity exemption, position reporting, position management controls and third-country issues. It is no longer updated; later Q&As are in ESMA's Q&A tool.
Commentary
No law-firm commentary is linked to this provision yet.
393 more documents relate to MiFID II as a whole without naming an article.
UK counterpart
UK transposition not traced in the FCA Handbook. It may sit in FSMA, the Regulated Activities Order or SI 2017/701, which are not yet mapped.
Version history
- From 28 Mar 2024
- From 28 Feb 2022 to 28 Mar 2024
- From 17 Sept 2014 to 28 Feb 2022
Each entry is a consolidated version of the act on EUR-Lex in which this provision appears. The text itself is on the official site.