EU ETS rules beyond 2020 revealed - benchmarks key for business models
- Category: Emissions trading
Numerous changes, but the basic architecture maintained. The European Commission revealed its draft amendment to the EU ETS Directive delineating rules for the EU ETS fourth trading period (2021-2030).
What are business models ramifications? Among wide spectrum of elements of the EU post-2020 low carbon framework the fact that EUAs issued from 1 January 2013 onwards will be valid indefinitely (and not replaced - as before) does not represent a qualitative change since these are rather technical details.
No doubt, point deserving to take a closer look in the first place is modified design for products benchmarks.
Non-fully backed bank guarantees coming to an end as the CCP collateral
- Category: EMIR
Expiring EMIR exemption will make as from 15 March 2016 CCP collateral more costly for non-financial counterparties.
RRM designation when first registering under REMIT - complicated case
- Category: REMIT
The latest version of a ACER's Questions and Answers on REMIT brings once more some important novelties of crucial practical importance.
However, one may still feel confused what is the clear requirement with respect to Registered Reporting Mechanism (RRM) designation when first registering with CEREMP.
Collateral vs central clearing - alternatives for OTC derivatives market
- Category: EMIR
The implementation of the central clearing obligation is expected to decrease the total gross notional outstanding for non-centrally cleared derivative activities (which is estimated about EUR 146 trillion) to about EUR 74.9 trillion (or by 49%).
It means 51% of these transactions will be cleared centrally and - after the implementation of the margin requirements - about 49% of the OTC derivatives market will be captured by the EMIR collateral requirement.
ACER's common schema for REMIT publications - carbon impact and "decision time" included
- Category: REMIT
ACER recommends, REMIT publication schema should include, among others, the field "impact on carbon permit prices" as well as "decision time" in order to allow users to evaluate the timeliness of the disclosure.
Intragroup transactions when calculating MiFID II ancillary activity exemption - itemised and evaluated?
- Category: MiFID
The complicated character of the MiFID II ancillary exemption calculations (see the relevant equations for:
- capital-employed test and
becomes even more complex when considering items involved with intra-group transactions.
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