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Article 57(1) of MiFID II\"\ndate: 13 February 2025\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/2439\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 13 February 2025\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/2439\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_2439: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2025-02-13\"\n  question_submitted_on: \"2025-02-13\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_2439, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_2439, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 13 Feb 2025 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 13 February 2025 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/2439)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 2439 — Q&A — Q&A on open interest thresholds in energy derivatives \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_2439 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 13 February 2025; question submitted 13 February 2025 |\n| **Legal basis** | Article 83(1)(b) of CDR 2017/565; Article 57(1) of MiFID II |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Q&A on open interest thresholds in energy derivatives**\n\n### Question\n\nHow do open interest thresholds that are denominated in lots such as in Article 83(1)(b) of CDR 2017/565 (10,000 lots) and in Article 57(1) of MiFID II (300,000 lots) translate into underlying units of energy derivatives such as Megawatt Hour (MWh), million British Thermal Units (MMBTU), or Therms (therm)?\n\n***\n\n### Answer\n\nFor the purpose of converting thresholds that are denominated in lots into underlying units of energy derivatives, ESMA considers the monthly contracts in which most trading activity is concentrated as a baseline, each representing 1 lot.\n\nThe conversion for the 10,000 lot threshold is exemplarily demonstrated below:\n\nFor gas and base load power, the monthly contracts representing 1 lot, are considered equivalent to 720MWh (1MW\\[1\\]\\*24h\\*30days). Given that 1 MWh = 3.41\\[2\\] MMBTU and 1 MMBTU = 10 therm, the following thresholds apply:\n\n10,000 lots = 10,000 \\* 720MWh = 7,200,000 MWh\n\n10,000 lots = 10,000 \\* 720MWh \\* 3.41 MMBTU/MWh = 24,548,477 MMBTU\n\n10,000 lots = 10,000 \\* 720MWh \\* 3.41 MMBTU/MWh \\* 10 therm/MMBTU = 245,484,766 therm\n\nFor peak load power, the monthly contract representing 1 lot is considered equivalent to 264MWh (1MW\\*12h\\*22days) and consequently, the following threshold applies:\n\n10,000 lots = 10,000 \\* 264MWh = 2,640,000 MWh\n\nThis Q&A expands the scope of the existing Q&A on Position limits - the definition of \"a lot\" to also cover position reporting, without changing the approach.\n\nConcerning gas derivatives denominated in units different from MWh, please also refer to the Q&A on lot sizes and position limits.\n\n\\[1\\] Sometimes the physical power of energy contracts is stated in daily terms, e.g. 1 MWh/d = 1/24 MW instead of 1 MW, however, this is less common.\n\n\\[2\\] The calculations were performed using a conversion factor of 3.4095106405145.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/2439)\n\n## Related Level 1 articles\n\n- [Article 57 — Position limits in commodity derivatives and position management controls in commodity derivatives and derivatives of emission allowances](../../../articles/57.md)\n"}