Position management controls

(1) An exchange at which commodity derivatives or derivatives of emission allowances are traded must establish procedures to prevent and correct disorderly trading, to promote orderly pricing and settlement conditions, and to ensure the efficiency of the markets (position management controls). These must be designed to be transparent and non-discriminatory, must set out how they are to be applied, and must have regard to the nature and composition of the trading participants and their use of the contracts admitted to trading. Within the framework of controls under the first and second sentences, the exchange must in particular ensure that it has the right to 1. monitor the open contract positions of every trading participant, 2. obtain access from trading participants to information, including all relevant documents, on the size and purpose of a position or exposure entered into, on beneficial or underlying owners, any agreements, and any related assets or liabilities in the relevant underlying market, including, where applicable, positions held in commodity derivatives with the same underlying and the same characteristics on other trading venues and in economically equivalent OTC contracts, via members and participants, 3. require any trading participant to terminate or reduce, temporarily or permanently, a position they have entered into, and, where the person concerned does not comply, to take appropriate unilateral action to ensure the termination or reduction, and 4. require any trading participant to provide liquidity back into the market temporarily at an agreed price and volume with the express intent of mitigating the effects of a large or dominant position. Further provisions on the content of the position management controls result from the regulatory technical standards adopted by the Commission on the basis of Article 57(8) of Directive 2014/65/EU, in its respective current version, in conjunction with paragraphs 10 to 14 of Regulation (EU) No 1095/2010.
(2) The exchange informs the exchange supervisory authority of the details of the position management controls under subsection (1). The exchange supervisory authority transmits that information to BaFin and to the European Securities and Markets Authority.