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MAR 10.1 Application

Introduction

MAR 10.1.1 G RP
  1. (1)

    1The purpose of this chapter is to implement articles 57 and 58 of MiFID by setting out the necessary directions, rules and guidance.

  2. (2)

    In particular, this chapter sets out the FCA’s requirements in respect of:

    1. (a)

      articles 57(1) and 57(6) of MiFID, which require competent authorities or central competent authorities to establish limits, on the basis of a methodology determined by ESMA, on the size of a net position which a person can hold, together with those held on the person’s behalf at an aggregate group level, at all times, in commodity derivatives traded on trading venues and economically equivalent OTC contracts to those commodity derivatives;

    [Note: articles 3 and 4 of MiFID RTS 21]

    1. (b)

      article 57(8) of MiFID, which requires MiFID investment firms and market operators operating a trading venue which trades commodity derivatives to apply position management controls;

    2. (c)

      article 58(1) of MiFID, which requires MiFID investment firms and market operators operating a trading venue which trades commodity derivatives or emission allowances to provide the competent authority with reports in respect of such positions held; and

    3. (d)

      article 58(2) of MiFID, which requires investment firms trading in commodity derivatives or emission allowances outside a trading venue to provide the competent authority or central competent authority with reports containing a complete breakdown of their positions held through such contracts traded on a trading venue and economically equivalent OTC contracts, as well as of those of their clients and the clients of those clients until the end client is reached.

  3. (3)

    The position limit requirements apply to both authorised persons and unauthorised persons. As such, the MiFI Regulations provide for a separate regulatory framework in relation to such persons. This framework is set out in:

    1. (a)

      Part 3 of the MiFI Regulations (‘Position limits and position management controls in commodity derivatives’); and

    2. (b)

      Schedule 1 to the MiFI Regulations (‘Administration and enforcement of Part 3, 4 and 5’), which provides for the administration and enforcement of position limits established by the FCA, and of the reporting of positions in commodity derivatives, emission allowances and economically equivalent OTC contracts.

    This chapter complements and adds to the regulatory framework in the MiFI Regulations by establishing the applicable position limits.

Scope and territoriality

MAR 10.1.2 G RP
  1. (1)

    The scope of this chapter is as follows: In respect of position limit requirements in MAR 10.2, a commodity derivative position limit established by the FCA in accordance with MAR 10.2.2D(1) applies regardless of the location of the person at the time of entering into the position and the location of execution.

[Note: article 57(14)(a) of MiFID]

  1. (2)

    In respect of position management controls requirements:

    1. (a)

      the requirements contained or referred to in MAR 10.3 apply to persons operating a trading venue which trades commodity derivatives in respect of which the FCA is the Home State competent authority; and

    2. (b)

      in the case of a UK branch of a third country investment firm operating an MTF or OTF, MAR 10.3 applies in the same way as it does to a UK firm operating a multilateral trading facility or an OTF.

  2. (3)

    In respect of position reporting requirements:

    1. (a)

      the position reporting requirements in MAR 10.4 apply to:

      1. (i)

        a UK regulated market; and

      2. (ii)

        a UK firm or a UK branch of a third country investment firm operating a multilateral trading facility or an OTF,

      when operating a trading venue which trades commodity derivatives or emission allowances; and

    2. (b)

      the position reporting requirements in MAR 10.4 apply to an investment firm regardless of its location at the time of entering into the position and the location of execution.

Structure

MAR 10.1.3 G RP

This chapter is structured as follows:

  1. (1)

    MAR 10.1 sets out an introduction to MAR 10, a description of the application of MAR 10 to different categories of person, an explanation of the approach taken to the UK transposition of articles 57 and 58 of MiFID, the scope and territoriality of this chapter, and the structure of this chapter.

  2. (2)

    MAR 10.2 sets out the position limit requirements.

  3. (3)

    MAR 10.3 sets out the position management controls requirements.

  4. (4)

    MAR 10.4 sets out the position reporting requirements.

  5. (5)

    MAR 10.5 sets out other reporting, notification and information requirements.

MAR 10.2 Position limit requirements

Establishing, applying and resetting position limits

MAR 10.2.1 G RP
  1. (1)

    1The following provisions of the MiFI Regulations regulate the establishment, application and resetting of position limits:

    1. (a)

      Regulation 16(1) imposes an obligation on the FCA to establish position limits in respect of commodity derivatives traded on trading venues in the United Kingdom and economically equivalent OTC contracts;

    2. (b)

      Regulation 16(2) imposes an obligation on the FCA to establish position limits on the basis of all positions held by a person in the contract to which the limit relates and those held on the person’s behalf at an aggregate group level;

    3. (c)

      Regulation 16(4) imposes an obligation on the FCA to publish the position limits it establishes in a manner which the FCA considers appropriate;

    4. (d)

      Regulation 18 imposes an obligation on the FCA to ensure that each position limit established by it specifies clear quantitative thresholds for the maximum size of a position in a commodity derivative that a person can hold;

    5. (e)

      Regulation 19(1) imposes an obligation on the FCA to establish position limits in accordance with ESMA’s methodology, unless an exceptional case exists under Regulation 25 of the MiFI Regulations;

    6. (f)

      Regulation 19(2) imposes an obligation on the FCA to review position limits it has established in the presence of certain factors;

    7. (g)

      Regulation 19(3) imposes an obligation on the FCA to establish a new position limit following its review if it believes that the limit should be reset;

    8. (h)

      Regulation 20(2) imposes an obligation on the FCA, where it receives an ESMA opinion stating that the establishment of a position limit would be, or is, incompatible with that opinion, to modify the position limit in accordance with ESMA’s opinion or to notify ESMA as to why amendment to the limit is considered to be unnecessary;

    9. (i)

      Regulation 21(1) imposes an obligation on the FCA to not establish a position limit in respect of a commodity derivative traded on trading venues in the United Kingdom, where there is a central competent authority for that commodity derivative other than the FCA;

    10. (j)

      Regulation 23 imposes general obligations on the FCA in respect of the position limits it establishes, so that the limits must be transparent and non-discriminatory, specify how they apply to persons, and take account of the nature and composition of market participants and of the use they make of the contracts admitted to trading;

    11. (k)

      Regulation 25(1) prohibits the FCA from establishing position limits which are more restrictive than permitted under ESMA’s methodology, unless in exceptional cases where more restrictive position limits are objectively justified and proportionate;

    12. (l)

      Regulation 25(2) to Regulation 25(5) impose obligations on the FCA where it establishes position limits which are more restrictive than permitted under ESMA’s methodology in accordance with Regulation 25(1) of the MiFI Regulations. The obligations are that the FCA must publish that position limit on its website, not apply that position limit for more than six months from the date of publication unless further subsequent six-month application periods for that limit are objectively justified and proportionate, and must notify ESMA of the position limit and the justification for establishing it;

    13. (m)

      Regulation 20(5) and Regulation 25(6) impose obligations on the FCA to publish a notice on its website explaining the reasons for its decision when, under Regulation 20(2) and Regulation 25(5) of the MiFI Regulations respectively, it does not modify a position limit following an ESMA opinion incompatible with the limit; and

    14. (n)

      Regulation 27 empowers the FCA to require a person to provide information on, or concerning, a position the person holds, or trades the person has undertaken, or intends to undertake, in a contract to which a position limit relates.

  2. (2)

    MiFID RTS 21 provides a methodology for the calculation of position limits on commodity derivatives, and rules for the calculation of the net position held by a person in a commodity derivative.

  3. (3)

    MiFID RTS 21 provides that the FCA can establish different position limits for different times within the spot month period or other months’ period of a commodity derivative, and for the spot month period, those position limits shall decrease towards the maturity of the commodity derivative, and shall take into account the position management controls of trading venues.

[Note: article 57 of MiFID]

Application of position limits

MAR 10.2.2 D RP
  1. (1)

    1A person must comply at all times with commodity derivative position limits established by the FCA, published at www.fca.org.uk.

  2. (2)

    A direction made under (1) applies where a commodity derivative is traded on a trading venue in the United Kingdom, provided that there is not a central competent authority established in an EEA State other than the United Kingdom.

  3. (3)

    Position limits established under (1) shall apply to the positions held by a person together with those held on its behalf at an aggregate group level (subject to the non-financial entity exemption in regulation 17(1) of the MiFI Regulations).

  4. (4)

    Position limits established under (1) shall apply regardless of the location of the person at the time of entering into the position.

  5. (5)

    Position limits established under (1) prior to 3 January 2018, will apply from 3 January 2018.

[Note: articles 57(1) and 57(14) of MiFID; and MiFID RTS 21 in respect of ESMA’s methodology for competent authorities to calculate position limits]

Non-financial entity exemption

MAR 10.2.3 G RP
  1. (1)

    1Regulation 17 of the MiFI Regulations regulates the position limit exemption applicable to positions in a commodity derivative held by or on behalf of a non-financial entity which are objectively measurable as reducing risks directly relating to the commercial activity of that non-financial entity, and which is approved by the FCA in accordance with the relevant criteria and procedures. Regulation 17(1) imposes an obligation on the FCA to disregard such positions, when calculating the position held by such entities in respect of a commodity derivative to which a position limit applies.

  2. (2)

    Regulation 17(2) of the MiFI Regulations enables the FCA to receive applications from non-financial entities for the purposes of obtaining an exemption from the position limits which it sets and in such form as the FCA may direct.

  3. (3)

    MiFID RTS 21 stipulates detail on positions qualifying as reducing risks directly related to commercial activities, and the application for the exemption from position limits.

  4. (4)

    MiFID RTS 21 clarifies that a non-financial entity shall notify the FCA if there is a significant change to the nature or value of that non-financial entity’s commercial activities, or its trading activities in commodity derivatives. The obligation arises where the change is relevant to the description of the nature and value of the non-financial entity’s trading and positions held in commodity derivatives and their economically equivalent OTC contracts in a position limit exemption application it has already submitted. In this case, a non-financial entity must submit a new application if it intends to continue to make use of the exemption.

[Note: article 57(1) of MiFID]

Non-financial entity exemption application

MAR 10.2.4 D RP

1A non-financial entity must complete the application form in MAR 10 Annex 1D for approval to be exempt from compliance with position limits established by the FCA in accordance with MAR 10.2.2D(1).

MAR 10.2.5 G RP

1Where a position limit is established by a competent authority or central competent authority other than the FCA, a non-financial entity should submit its application for exemption, in relation to the position limit, to that competent authority or central competent authority in the manner it specifies.

[Note: article 8 of MiFID RTS 21]

MAR 10.3 Position management controls

Application

MAR 10.3.1 G RP

1The application of this section is set out in the following table:

Type of firm

Applicable provisions

a UK market operator operating a trading venue

MAR 10.3.2G and MAR 10.3.4G

a UK firm operating a multilateral trading facility or an OTF and a UK branch of a third country investment firm operating a multilateral trading facility or an OTF

MAR 10.3.3R to MAR 10.3.5G

Position management controls applicable to UK market operators operating a trading venue

MAR 10.3.2 G RP

A UK market operator operating a trading venue which trades commodity derivatives must apply position management controls on that trading venue, in accordance with paragraph 7BA of the Schedule to the Recognition Requirements Regulations, as inserted by the MiFI Regulations.

[Note: article 57(8) to 57(10) of MiFID]

Position management controls applicable to UK firms and UK branches of third country investment firms operating an MTF or OTF

MAR 10.3.3 R RP
  1. (1)

    This rule applies to a UK firm operating a multilateral trading facility or an OTF and a UK branch of a third country investment firm operating a multilateral trading facility or an OTF.

  2. (2)

    A firm must apply position management controls which enable an MTF or OTF at least to:

    1. (a)

      monitor the open interest positions of persons;

    2. (b)

      access information, including all relevant documentation, from persons about:

      1. (i)

        the size and purpose of a position or exposure entered into;

      2. (ii)

        any beneficial or underlying owners;

      3. (iii)

        any concert arrangements; and

      4. (iv)

        any related assets or liabilities in the underlying market;

    3. (c)

      require a person to terminate or reduce a position on a temporary or permanent basis and unilaterally to take appropriate action to ensure the termination or reduction if the person does not comply; and

    4. (d)

      require a person to provide liquidity back into the market at an agreed price and volume on a temporary basis with the express intent of mitigating the effects of a large and dominant position.

  3. (3)

    The position management controls in paragraph (2) must take account of the nature and composition of market participants and of the use they make of the contracts admitted to trading and must:

    1. (a)

      be transparent;

    2. (b)

      be non-discriminatory; and

    3. (c)

      specify how the controls apply to persons.

  4. (4)

    A firm must inform the FCA of the details of the position management controls in relation to each MTF or OTF it operates which trades commodity derivatives.

[Note: article 57(8) to 57(10) of MiFID]

Supervision of position management controls

MAR 10.3.4 G RP

An operator of a trading venue referred to in MAR 10.3.1G may include provisions in its rulebook which impose appropriate obligations on its members or participants as part of compliance with its position management controls obligations.

Position management controls: Procedure for informing the FCA

MAR 10.3.5 G RP

A firm must comply with the obligation in MAR 10.3.3R(4) by completing the form available at www.fca.org.uk.

MAR 10.4 Position reporting

Application

Position reporting by UK regulated markets

MAR 10.4.2 G RP

1A UK regulated market which trades commodity derivatives or emission allowances must provide position reports in accordance with paragraph 7BB of the Schedule to the Recognition Requirements Regulations, as inserted by the MiFI Regulations.

[Note: article 58(1) of MiFID]

Position reporting by UK firms and UK branches of third country investment firms operating an MTF or OTF: Reports

MAR 10.4.3 R RP
  1. (1)

    1This rule applies to a UK firm operating a multilateral trading facility or an OTF and a UK branch of a third country investment firm operating a multilateral trading facility or an OTF.

  2. (2)

    A firm must make public and provide to the FCA and ESMA a weekly report with the aggregate positions held by the different categories of persons for the different commodity derivatives or emission allowances traded on the trading venue, where those instruments meet the criteria of article 83 of the MiFID Org Regulation, specifying:

    1. (a)

      the number of long and short positions held by such categories;

    2. (b)

      changes in those positions since the previous report;

    3. (c)

      the percentage of the total open interest represented by each category; and

    4. (d)

    the number of persons holding a position in each category, as specified in MAR 10.4.4R.

  3. (3)

    The firm must provide the FCA with a complete breakdown of the positions held by all persons, including the members or participants and clients, as well as those of their clients until the end client is reached, on the trading venue on a daily basis.

  4. (4)

    For the weekly report mentioned in (2) above, the firm must differentiate between:

    1. (a)

      positions which in an objectively measurable way reduce risks directly relating to commercial activities; and

    2. (b)

      other positions.

    [Note: article 58(1) of MiFID, MiFID ITS 4 on position reporting and MiFID ITS 5 on the format and timing of weekly position reports to ESMA]

Position reporting by UK firms and UK branches of third country investment firms operating an MTF or OTF: classification of persons holding positions in commodity derivatives or emission allowances

MAR 10.4.4 R RP

1A firm must classify persons holding positions in commodity derivatives or emission allowances according to the nature of their main business, taking account of any applicable authorisation or registration, as:

  1. (1)

    investment firms or credit institutions; or

  2. (2)

    investment funds, either as a UCITS, or an AIF or an AIFM; or

  3. (3)

    other financial institutions, including:

    1. (a)

      insurance undertakings and reinsurance undertakings as defined in the Solvency II Directive; and

    2. (b)

      institutions for occupational retirement provision as defined in Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement; or

  4. (4)

    commercial undertakings; or

  5. (5)

    in the case of emission allowances, operators with compliance obligations under the Emission Allowance Trading Directive.

[Note: article 58(4) of MiFID]

Position reporting by UK firms and UK branches of a third country investment firms operating an MTF or OTF: Procedure for reporting to the FCA

MAR 10.4.5 D RP
  1. (1)

    1This direction applies to:

    1. (a)

      a UK firm operating a multilateral trading facility or an OTF; and

    2. (b)

      a UK branch of a third country investment firm operating a multilateral trading facility or an OTF.

  2. (2)

    A firm shall report to the FCA:

    1. (a)

      (where it meets the minimum threshold as specified in article 83 of the MiFID Org Regulation) the weekly report referred to in MAR 10.4.3R(2), by using the form set out in Annex I of MiFID ITS 4, and publish it on its website and provide the report to ESMA; and

    2. (b)

      in respect of the daily report referred to in MAR 10.4.3R(3):

      1. (i)

        by using the form set out in Annex II of MiFID ITS 4 available at https://www.fca.org.uk/markets/mifid-ii/commodity-derivatives; and

      2. (ii)

        in each case, the report must be provided to the FCA by 21:00 GMT the following business day.

      [Note: MiFID ITS 4 on position reporting]

Position reporting by UK firms and UK branches of a third country investment firms operating an MTF or OTF: Duplication of reporting

MAR 10.4.6 G RP

1For the purposes of making the weekly report referred to under MAR 10.4.3R(2), the FCA will accept an email containing a link to the report, as published on the firm’s website. Emails should be sent to the FCA at COT_reports@fca.org.uk. This guidance does not affect the separate obligation for a firm to make the weekly report to ESMA.

Position reporting by members, participants or clients of UK trading venues: trading venue participant reporting

MAR 10.4.7 D RP
  1. (1)

    1This direction applies to a member, participant or a client of a trading venue.

  2. (2)

    A person in (1) must report to the relevant operator of a trading venue the details of their own positions held through contracts traded on that venue, at least on a daily basis, as well as those of their clients and the clients of those clients, until the end client is reached.

  3. (3)

    Paragraph (2) above does not apply to a member, participant or a client of a trading venue that is an EEA person.

[Note: article 58(3) of MiFID]

UK MiFID investment firms and UK branches of third country investment firms: OTC reporting to the FCA

MAR 10.4.8 D RP
  1. (1)

    1This direction applies to:

    1. (a)

      a UK MiFID investment firm; and

    2. (b)

      a UK branch of a third country investment firm.

  2. (2)

    An investment firm in (1) trading in a commodity derivative or emission allowance outside a trading venue must, where the FCA is the competent authority of the trading venue where that commodity derivative or emission allowance is traded, provide the FCA with a report containing a complete breakdown of:

    1. (a)

      their positions taken in those commodity derivatives or emission allowances traded on a trading venue;

    2. (b)

      economically equivalent OTC contracts; and

    3. (c)

      the positions of their clients and the clients of those clients until the end client is reached, in accordance with article 26 of MiFIR.

  3. (3)

    The report in (2) must be submitted to the FCA, for each business day, by 21:00 GMT the following business day, using the form set out in Annex II of MiFID ITS 4 available at https://www.fca.org.uk/markets/mifid-ii/commodity-derivatives.

  4. (4)

    The obligation in (2) does not apply where there is a central competent authority for the commodity derivative other than the FCA.

[Note: 58(2) of MiFID, and MiFID ITS 4 on position reporting]

UK MiFID investment firms and UK branches of third country investment firms: OTC reporting to EEA competent authorities other than the FCA

MAR 10.4.9 D RP
  1. (1)

    1This direction applies to:

    1. (a)

      a UK MiFID investment firm; and

    2. (b)

      a UK branch of a third country investment firm.

  2. (2)

    An investment firm in (1) trading in a commodity derivative or emission allowance outside a trading venue must, where an EEA competent authority other than the FCA is the competent authority of the trading venue where that commodity derivative or emission allowance is traded, or the central competent authority for the purposes of that commodity derivative, provide that EEA competent authority with a report containing a complete breakdown of:

    1. (a)

      their positions taken in those commodity derivatives or emission allowances traded on a trading venue;

    2. (b)

      economically equivalent OTC contracts; and

    3. (c)

      the positions of their clients and the clients of those clients until the end client is reached, in accordance with article 26 of MiFIR.

  3. (3)

    The report in (2) must be submitted to the relevant EEAcompetent authority, for each business day, using the form set out in Annex II of MiFID ITS 4, by the time specified by that EEAcompetent authority.

  4. (4)

    The obligation in (2) does not apply where the FCA is the central competent authority for that commodity derivative.

[Note: 58(2) of MiFID, and MiFID ITS 4 on position reporting]

EEA MiFID investment firms who are members, participants or clients of UK trading venues: trading venue participant reporting and OTC reporting to the FCA

MAR 10.4.10 D RP
  1. (1)

    1This direction applies to an EEA MiFID investment firm which is a member, participant or a client of a UK trading venue.

  2. (2)

    MAR 10.4.7D applies to an EEA MiFID investment firm under (1), as if it were a UK MiFID investment firm.

  3. (3)

    MAR 10.4.8D applies to an EEA MiFID investment firm under (1), as if it were a UK MiFID investment firm, where the EEA MiFID investment firm trades in a commodity derivative or emission allowance outside a trading venue, and the FCA is the competent authority of the trading venue where that commodity derivative or emission allowance is traded, or the central competent authority for the purposes of that commodity derivative.

  4. (4)

    Paragraphs (2) and (3) above only apply where the EEA MiFID investment firm is not subject to a corresponding rule or other requirement imposed by its Home State competent authority.

MAR 10.4.11 G RP
  1. (1)

    2This guidance applies to persons subject to MAR 10.4.8D(2) or MAR 10.4.10D(3).

  2. (2)

    A firm subject to MAR 10.4.8D(2) or MAR 10.4.10D(3) may use a third party technology provider to submit to the FCA the report referred to in MAR 10.4.8 D(2) provided that it does so in a manner consistent with MiFID. It will retain responsibility for the completeness, accuracy and timely submission of the report and should populate field 5 of MiFID ITS 4 Annex II with its own reporting entity identification. It should be the applicant for, and should complete and sign, the FCA MDP on-boarding application form.

  3. (3)

    MAR 10.4.11.G(2) applies to a trading venue subject to MAR 10.4.

  4. (4)

    A firm subject to MAR 10.4.8D(2) or MAR 10.4.10D(3) may arrange for the trading venue where that commodity derivative or emission allowance is traded to provide the FCA with the report provided that it does so in a manner consistent with MiFID. The firm will retain responsibility for the completeness, accuracy and timely submission of the report, submitted on its behalf. The firm should populate field 5 of MiFID ITS 4 Annex II with its own reporting entity identification.

MAR 10.5 Other reporting, notifications and information requirements

Information requirement

MAR 10.5.1 G RP

1Regulation 27 of the MiFI Regulations provides the FCA with the power to:

  1. (1)

    require a person to provide information including all relevant documentation, on, or concerning:

    1. (a)

      a position the person holds in a contract to which a position limit relates; and

    2. (b)

      trades the person has undertaken, or intends to undertake, in a contract to which a position limit relates; and

  2. (2)

    require an operator of a trading venue to provide information including all relevant documentation on, or concerning, trades a person has undertaken, or intends to undertake in a contract to which a position limit relates.

[Note: article 69(2)(j) of MiFID]

Power to intervene

MAR 10.5.2 G RP

1The following provisions of the MiFI Regulations regulate the power of the FCA to intervene in respect of position limits:

  1. (1)

    Regulation 28 provides that the FCA may, if it considers necessary, limit the ability of any person to enter into a contract for a commodity derivative, restrict the size of positions a person may hold in such a contract, or require any person to reduce the size of a position held, notwithstanding that the restriction or reduction would be more restrictive than the position limit established by the FCA or another competent authority in accordance with article 57 of MiFID to which the contract relates; and

  2. (2)

    Paragraph 5 of Schedule 1 provides that the FCA must maintain arrangements designed to enable it to determine whether persons on whom the FCA imposes position limit requirements are complying with those requirements, and also maintain arrangements for enforcing the position limits requirements on such persons.

[Note: article 69(2)(o) and 69(2)(p) of MiFID]

Reporting requirements

MAR 10.5.3 G RP

1The following provisions of the MiFI Regulations regulate the power of the FCA to impose reporting requirements in respect of positions taken in commodity derivatives and emission allowances:

  1. (1)

    Paragraph 8 of Schedule 1 provides that a person must provide the FCA with information in respect of its compliance or non-compliance with position limit requirements, as the FCA may direct; and

  2. (2)

    Paragraph 5 of Schedule 1 provides that the FCA must maintain arrangements designed to enable it to determine whether persons on whom the FCA imposes position limit requirements are complying with those requirements, and also maintain arrangements for enforcing the position limits requirements on such persons.

[Note: article 69(2)(j) of MiFID]

Breaches of MAR 10 by unauthorised persons

MAR 10.5.4 G RP
  1. (1)

    1An unauthorised person to which this chapter applies must notify the FCA of:

    1. (a)

      a breach of a direction in this chapter;

    2. (b)

      a breach of a directly applicable provision imposed by MiFIR or any EU regulation adopted under MiFID or MiFIR; and

    3. (c)

      a breach of any requirement imposed by or under the MiFI Regulations which relates to this chapter.

  2. (2)

    Notifications under (1) must be made immediately if the person becomes aware, or has information which reasonably suggests, that any of the breaches referred to in (1) have occurred, may have occurred or may occur in the foreseeable future.

Notifications by unauthorised persons: non-financial entity exemption applications

MAR 10.5.5 G RP

1 SUP 15.3.13G and SUP 15.3.14G apply to notifications of an application by an unauthorised person for the non-financial entity exemption under regulation 17 of the MiFI Regulations as if the person is a firm to which SUP 15.3.11R applies.

Breaches of MAR 10 by authorised persons

MAR 10.5.6 G RP

1 Firms should refer to SUP 15.3 (General notification requirements) generally, and in particular SUP 15.3.11R, in respect of the following:

  1. (1)

    a breach of a rule or direction in this chapter;

  2. (2)

    a breach of a directly applicable provision imposed by MiFIR or any EU regulation adopted under MiFID or MiFIR; and

  3. (3)

    a breach of any requirement imposed by or under the MiFI Regulations which relates to this chapter.

Territoriality

MAR 10.5.7 G RP

1 The powers of the FCA referred to in MAR 10.5.1G to MAR 10.5.3G can be applied to a person regardless of whether the person is situated or operating in the UK or abroad, where the relevant position relates to a commodity derivative or emission allowance of which the FCA is the competent authority or central competent authority, or economically equivalent OTC contracts.

Decision and appeal procedures

MAR 10.5.8 G RP

1The power of the FCA referred to in MAR 10.5.2G is exercisable subject to the decision-making procedures in DEPP 2 Annex 2G (Supervisory notices) (and other provisions in DEPP, as appropriate).

MAR 10 Annex 1 Application form for a non-financial entity for an exemption from compliance with position limits

D

1[Editor’s Note: To follow]