Position Limits in Commodity Derivatives: A Quantitative Regulatory Technique for the Efficiency of Financial Markets?

The paper aims to carry out an exegetical and systematic analysis of position limits in commodity derivatives, according to a tripartite structure. In the first part, the problems arisen in the financial markets at a supranational level are highlighted, identifying the reasons and functions of the legislative-regulatory intervention. The second area focuses on the concept of position limits, critically reconstructing the objective scope of application and delving into the controversial calculation method functional to identification of position limits and determination of net position size. The examination of the subjective application perimeter then follows, taking care to identify the exact application latitude of the exemption regime. The third part is devoted to reporting obligations. Finally, in a global policy perspective, the study will allow to carry out some broader reflections with reference to the regulatory technique to be used in order to improve the efficiency of the financial markets and reduce excess speculation, trying to ascertain whether and possibly within which thresholds it is optimal that the legislator uses a quantitative approach for these purposes or if it inappropriately risks rigidifying the overall system and hindering the birth of new commodity derivatives, in addition to the development of the current ones.