Insights not interference
Position Limits solution
BroadPeak calculates position limits using the same methodologies set by exchanges or regulations like Dodd-Frank and MiFID II within a single platform. An intuitive dashboard gives compliance and risk teams a real-time view of positions, limits and potential breaches, while continuous recalculations identify issues before limits are exceeded. Results are reconciled against authoritative source data to support audit-ready compliance.
Position limits, managed end-to-end
Limits under control
Regulator grade calculations
Positions are measured using the identical calculation logic regulators and exchanges use, not an internal approximation, so the same number holds up whether it's being reviewed under regulatory frameworks such as Dodd-Frank and MiFID II, or by exchanges such as ICE, CME, and LME.
Limit data direct from exchanges
Most systems rely on static reference tables or manual processes to manage position limits reference data. BroadPeak, built for energy and commodity trading firms, takes a different approach. Our Position Limits solution automatically ingests and updates authoritative limit data directly from exchanges and venues in near real time.
Direct exchange and FCM connectivity
BroadPeak's Position Limits solution connects directly to FCMs, E/CTRMs, and exchanges to capture trade data at source. We manage the complexity of the entire 'trade data supply chain', normalizing and aggregating data across formats and systems to ensure consistency and accuracy.
Real time positions vs open interest
Energy and commodity trading firms get instant notifications alerts on your positions vs limits by accessing your data via our web interface or customizable desktop reports, compatible with BI tool. Access additional insights like real-time position vs. open interest using our comprehensive data set.
Real limits, at scale
We do not estimate or simulate limits, we pull the real, up-to-date limits published by each exchange, at an unmatched scale: millions of data points daily
Meet Atlas
Data you trust
Atlas is the reference data engine behind BroadPeak’s Position Limits solution. It includes an API that facilitates querying a database containing published limits from global exchanges and regulatory bodies.
Precision across instruments
Built-in logic for calculating expiration periods and rules for decomposing products into top-level products ensures limits are calculated and applied accurately across even the most complex instruments.
Always current
Nightly automatic updates from global exchanges and regulators keep your limit’s database accurate so you are always working from current data.
Real-time compliance
We do not estimate or simulate limits; we use real, up-to-date limits published by each exchange. Atlas ingests this data and applies it to your trades in real time, ensuring your positions are always aligned with regulatory expectations.
Built for scale
Atlas ingests millions of live data points daily, capturing real-time updates from global exchanges. With around 2 million position limit records processed each day so you are always working with the most current, accurate information.
Transparency and control
BroadPeak retrieves limit reference data, including product limits, aggregation ratios, and option deltas, directly from the Atlas API for, real-time compliance monitoring.
Logic behind every limit
Limits made clear
Position limit logic gets complicated fast. BroadPeak automatically handles diminishing factors, parent-child product groupings, and delta-based option exposure, so your exposure calculation matches what regulators and exchanges actually apply.
Diminishing factors
Certain contracts decrease in position value as the spot month approaches. BroadPeak adjusts for these dynamic factors to accurately reflect how positions count toward the overall limit.
Parent-child grouping
Exchanges frequently group related instruments when setting limits e.g., a parent product like crude oil may include child products such as specific grades or spreads. We aggregate these groupings to mirror the exchange’s view of total exposure.
Futures equivalent position
Many option positions are not just about counting contracts, they are delta-based. We unify futures and options into a single delta calculation to ensure accurate exposure measurement and compliance with exchange rules.
From source to compliance
No manual reconciliation, no gaps
You get real-time position measurement, sourced directly from exchanges and E/CTRMs. Stay compliant across multiple regulatory regimes and exchanges, with no manual reconciliation required.
Position limits start with data, not rules
One of the most overlooked risks in position limits compliance is the accuracy and timeliness of reference data.
Built for what matters
Calculations, data, and workflows
BroadPeak calculates positions using regulator and exchange defined methodology, sourced directly from exchanges and E/CTRMs, with no manual reconciliation required.
How does BroadPeak calculate futures-equivalent exposure for delta-based option positions?
Option positions are not just contract counts, many are delta-based, meaning their actual market exposure differs from their raw position size. BroadPeak converts option positions into their futures-equivalent exposure by applying delta, enabling options and futures to be aggregated and assessed against position limits on the same basis.
How does BroadPeak aggregate positions across affiliated entities to prevent inadvertent breaches of CFTC or MiFID II aggregation rules?
Both the CFTC and MiFID II require positions to be aggregated across affiliated entities, not assessed in isolation. A breach can occur even when no single entity individually exceeds the limit. BroadPeak aggregates positions at the group level, mirroring how regulators and exchanges assess exposure, so aggregation risk is visible before it becomes a violation.
Can BroadPeak flag exposure that only breaches a limit once aggregated across multiple exchanges?
Yes. Position limit violations are not always visible on a single exchange. Exposure can be compliant on each venue individually but breach a limit once combined across exchanges. BroadPeak consolidates positions across venues into a single view, so cross-exchange exposure is measured the same way regulators assess it.
How does BroadPeak distinguish spot-month limits from all-months-combined limits across different exchanges?
Most exchanges and regulators set separate limits for the spot month and for all months combined, and the rules governing each can differ by contract and venue. BroadPeak applies the correct limit type per contract automatically, rather than requiring teams to manually track which rule applies where.
How does BroadPeak handle the UK's shift in position-limit-setting responsibility from the FCA to individual trading venues?
Under the UK’s revised commodity derivatives framework, responsibility for setting position limits has moved from the FCA to individual trading venues. BroadPeak tracks limits at the venue level as they are set, so compliance stays current as venues assume this responsibility rather than relying on a single centralized source.
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