Subsection 1: Position limits

I.-The AMF establishes and applies limits on the size of a net position that a person may hold at any time:

1° In agricultural commodity derivatives within the meaning of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014, traded on trading platforms;

2° In commodity derivatives within the meaning of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014, traded on trading platforms when they are of critical or significant importance;

3° In OTC contracts economically equivalent to these instruments.

Commodity derivatives are considered to be of critical or significant importance when the sum of all the net positions of the final position holders represents the size of their open position and is at least equal to 300,000 lots on average over a one-year period.

II. -Position limits are applied on the basis of all positions held by a person and those held on his behalf at the level of a group within the meaning ofArticle L. 233-17-2 of the Commercial Code in order to:

1° Prevent market abuse within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse;

2° Promote orderly quotation and efficient settlement, including by avoiding market-distorting positions, and in particular by ensuring convergence between the prices of commodity derivatives during the delivery month and the spot prices of the underlying, without prejudice to the determination of prices on the spot market of the underlying.

Position limits do not apply to:

1° To positions held by or on behalf of a non-financial entity mentioned in Article 2(9) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on over-the-counter derivatives, central counterparties and trade repositories which, in an objectively measurable way, reduce the risks directly related to the business activity of that non-financial entity ;

2° Positions held by or on behalf of a financial entity belonging to a mainly commercial group and acting on behalf of a non-financial entity belonging to the mainly commercial group, where these positions, in an objectively measurable way, reduce the risks directly linked to the commercial activity of this non-financial entity;

3° Positions held by financial and non-financial counterparties where it can be established in an objectively measurable way that they result from transactions entered into to comply with obligations to provide liquidity on a trading platform where these arise from EU law, or from legislative and regulatory provisions, or where they originate from a trading platform;

4° Derivatives on commodities or on climatic variables, freight rates or inflation rates or other official economic statistics.

III.Position limits include quantitative thresholds concerning the maximum size of a position in a commodity derivative that a person may hold.

IV.-The AMF establishes position limits for critical or significant commodity derivatives and agricultural commodity derivatives that are traded on trading platforms using the calculation methodology set out in the technical regulatory standards adopted by the European Commission. These position limits include economically equivalent OTC contracts as defined by decree.

The Chairman of the Autorité des marchés financiers or his designated representative may review the position limits in the event of a significant change in the market, in particular in deliverable quantities or open positions, on the basis of the deliverable quantities and open positions determined by the Autorité des marchés financiers. It shall revise these position limits in accordance with the calculation methodology determined by the technical standards adopted by the European Commission.

V.-The Autorité des marchés financiers shall notify the European Securities and Markets Authority of the position limits it intends to set.

Depending on the opinion issued by the European Securities and Markets Authority following such notification, the Autorité des marchés financiers shall either amend the position limits or provide the European Securities and Markets Authority with a justification as to why such amendment is not considered necessary. Where the Autorité des marchés financiers imposes limits that differ from an opinion issued by the European Securities and Markets Authority, it shall immediately publish a statement on its website explaining in detail the reasons for the difference.