The EU ETS installation's capacity reduction - something to loose or gain
- Category: Implementation
If the operator is planning the capacity reduction in an installation covered by the EU ETS scheme and there are, for technical reasons, the two options as regards the implementation date for this decision: for instance 15 December of the year "n" and 15 January of the year "n+1", which of the two dates indicated is more advantageous for installation's operator for the free allocations' purposes?
NIMs Decision - key determinations for carbon market analytics for the period 2013 - 2020
- Category: Auctions of CO2 allowances
As a result of the NIMs Decision, some 66.3 million more allowances are to be auctioned for 2013 but this figure will influence on auction calendars in 2014.
Clearance on free-allocation state aid issues in the Commission communication of 5 September 2013
- Category: Implementation
As a result of the delay, until the Commission's communication of 5 September 2013 European industrial installations eligible to be granted free carbon permits were not cognizant of the exact volumes of the allocation under Article 10a of the Directive 20013/87/EC.
Types and effects of client segregation under EMIR
- Category: EMIR
Where a clearing member desires to use its own assets (i.e. assets that were not posted by a client of the clearing member) to fulfil the margin requirements of the client account, then such assets could be recorded in a client account at a CCP, however in doing so the assets would be treated as assets held for the account of clients of the clearing member. This would mean that upon a default of the clearing member, the assets would be exposed to losses connected to the client account in which the assets were recorded and could no longer be used to meet any losses on the defaulted clearing member's house account(s).
This interpretation has been acknowledged by ESMA in regulatory guidance.
Seasonal forwards considered temporarily the most appropriate indexes for baseload reference price in the UK FIT CfD
- Category: Capacity Markets
The reference price for baseload generation under the UK FIT CfD contracts scheme (implementation thereof is intended in summer 2014 already) will initially be calculated from the two reference prices each year; one set every six months, however, the concrete set of indices and their weightings are yet to be confirmed, thus financial assessments are still not viable.
Moreover, the longer term intention is to move in that regard to year-ahead forward prices and the unknown mechanics of this transition adds to the investors' risks.
ACER narrows premises for disclosing REMIT inside information on market participant's own websites
- Category: REMIT
Market participants may disclose REMIT inside information on their own website either as a fall-back option or simultaneously to a disclosure of inside information through an inside information platform, however, the updated regulatory guidelines appear to treat the publication of inside information on the market participant's own website as an interim measure, allowed only under multiple conditions and unless otherwise specified.
ENTSO-E proposes the key rules for harmonised imbalance calculation and pricing
- Category: Network Codes
In order to give adequate incentives for Balance Responsible Parties (BRPs), the draft Code Balancing Code asserts that BRP aggravating imbalances shall not be priced less (for shortage) respectively more (for surplus) than the weighted average price for Frequency Restoration Reserve (FRR) and Replacement Reserve (RR) in the relevant area, in order to reflect the local imbalance situation.
ESMA's trouble with ETDs' reporting
- Category: EMIR
Deadlines for EMIR reporting for exchange-traded derivatives (ETDs) will likely be extended by 1 January 2015.
Clearing thresholds under EMIR - certain trades counted threefold
- Category: EMIR
Generally, a group of companies is often perceived by legislators and judicature as a single economic unit. The case is also present under EMIR rules, where for instance, to establish whether a subsidiary has crossed a clearing threshold, transactions of the entire group must be counted.
On the other hand, when a group - as a single economic unit - buys emission permits in the carbon market, the value of transaction is - for EMIR clearing threshold calculations - 300% of the trade.
It is evident that the monitoring of the EMIR requirements by non-financials mustn't consist in the verification of the clearing threshold levels only, but needs to be supported by sophisticated procedures and IT tools.
Bidding zones review - new regulatory risk?
- Category: Network Codes
Do the review of existing bidding zones increase the electricity generators' costs and risks?
Emissions OTC derivative contracts between EU branches of non-equivalent third countries subjected to EMIR
- Category: Emissions trading
As opposite to OTC derivative contracts between EU branches of non-equivalent third countries (which are proposed by ESMA to be subjected to EMIR) OTC derivative contracts between the EU branch of a non-EU entity and another non-EU entity is not captured. Such an approach seems to be lacking in systemic cohesion.
 Scope of application of EMIR to third country entities - draft RTS | [ ] | 40 kB |
EUAM - a new type of emission allowances?
- Category: Emissions trading
It is probable new emission allowances appear in the medium perspective on the European carbon market. The arguments that supported the creation of distinct carbon units for aviation sector (EUAA) are present also for the maritime sector.