Breaching a hard limit when trading derivatives is a big no-no, and can result in penalties and fines for offenders. However, under special circumstances, firms can secure an agreement with exchanges and regulators to override these limits, following exemption rules that are set out by exchanges and regulators.
Once exemptions are secured, the monitoring of these new limits can then become manual and error-prone. That is why we decided to introduce a new feature in our Position Limits service: Exemptions. This new feature allows users to override and customise their limit values, provides visibility of active and/or deactivated exemptions in the system, and organises all the information that refers to specific exemptions in one place. Having all this information readily accessible is paramount in staying compliant.
Animation of our new exemptions functionality
Does your firm have exemptions from position limits? Register for our upcoming webinar where we’ll be discussing how to track and monitor exemptions, as well as how to overcome data quality issues.
If you’d like to find out more about how our automated Position Limits service can help you then get in touch!