MAR 10.3 Position management controls

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]