Position Limits

MX sets and publishes monthly position limits on futures and options on futures, and quarterly on equity, index and currency options. The position limit on any futures contracts refers to the number of contracts for all net long or net short positions in all contract months combined. See the Circulars section for position limits.

Besides position limits, MX fixes reporting limits. Reporting limits are net position levels over which the MX requires reporting by the client. Click on MX Products for reporting limits.

Request for exemption

A provision of MX policies (Policy C-1) allows "bona fide" hedgers to claim an exemption from the position limits on options and futures to better manage their business. Any client or his or her approved participant (who is a "bona fide" hedger) can file an application for exemption with MX.

The application must be filed before 9:30 a.m. (Montréal time) on the first business day following the day the position exceeded the limit. An internal committee (represented by both CDCC and MX) will review and analyze the request. The written decision is forwarded to the approved participant or the client as soon as possible. If the committee refuses the exemption, a time frame is established for the position to be reduced below the prescribed limit. If the committee approves the exemption, MX will monitor the situation closely and will hold the right to review and change the exemption.