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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

You are viewing the version of the document as on 2021-01-01.

Status: In this content, we have included all amendments made by EU exit-related instruments up to end September 2020. There will be more amendments to be made later this year, further to the September QCP.

Article 3 Aggregation and netting of positions in a commodity derivative(Article 57(1) of Directive 2014/65/EU)

  1. (1)

    The net position of a person in a commodity derivative shall be the aggregation of its positions held in that commodity derivative traded on a trading venue, and in economically equivalent OTC contracts pursuant to Article 6.

  2. (2)

    Where a person holds both long and short positions in any of the commodity derivatives referred to in paragraph 1, the person shall net those positions to determine its net position for that commodity derivative.

  3. (3)

    Positions held by a non-financial entity in commodity derivatives that are objectively measureable as reducing risks in accordance with Article 7, as approved by the competent authority pursuant to Article 8, shall not be aggregated for the purposes of determining the net position of that non-financial entity.

  4. (4)

    A person shall determine separately the net position it holds in a commodity derivative for both the spot month contracts and the other months' contracts.