OPINION: Position limits - a question of balance

The UK’s financial markets will all receive a belated festive present on January 3, 2018, a Markets in Financial Instruments Directive II (MiFID II) parcel that, when the wrapping comes off, will contain new regulations and compliance measures.

One of these is position limits, which will restrict permissible holdings in a market’s instruments, commodities or derivatives. In other words, a ceiling on the size of a large market...