Together, the MiFID II Directive (2014/65/EU) and the Markets in Financial Instruments Regulation (600/2014) (MiFIR) form the legal framework governing the requirements applicable to investment firms, trading venues, data reporting service providers (DRSPs) and third-country firms providing investment services or activities in the EU.

This note discusses Article 57 of the MiFID II Directive, which imposed EU-wide rules restricting the size of certain positions traders can take in commodity derivatives. It also provides an overview of the position reporting requirements under Article 58, and relevant enforcement powers granted to national competent authorities (NCAs) and ESMA, who are charged with ensuring compliance with these provisions.