Position Limits Service - Rules Overview

The FundApps Position Limits service tracks three kinds of limits:

  1. Position Limits
  2. Reporting Levels
  3. Accountability Levels

Each level of limits is associated with different obligations. 

1. Position Limits are limits that should not be crossed or breached unless the market participant has an approved exemption. Any positions in excess of these limits would be considered a rule violation. These limits can be based on four types:

  1. All Month: The sum of all contracts you own across all delivery months. 
  2. Single Month: For each delivery month, the sum of all contracts for that delivery month
  3. Spot Month: The sum of all the contracts for the closest delivery month. This limit will only go into effect in a certain time window defined on a per-contract basis by the exchange
  4. Other Month: All Months minus Spot Month. Typically used by the MIFID II regulation. Other Month contracts have an increase in the contract limit typically 21 days before expiry of the current spot month contract. The reason for this is that it allows traders to increase their position in advance of a contract expiring in order to maintain their desired position during the roll-over period

  • Open Interest Rules here
  • CFTC Federal Rules here

2. Reporting Levels are unique in a way that crossing a Reporting Level requires action from the position holder. You can learn more about these rules here. Please note, only reporting levels for the Hong Kong Stock Exchange are currently supported. 

3. Accountability Levels exist as a notification alert and may require action depending on the contract code and market. We recommend contacting FIA/relevant exchange to confirm if action is required.

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