EMIR - procedural strategy for clearing and collateral intra-group exemptions
- Category: EMIR
Company's groupings qualifying as non-financial counterparties currently below the clearing threshold under EMIR Regulation, considering clearing and collateral exemptions for intra-group transactions as valuable alternative for their businesses, may face a dilemma whether to make the appropriate submissions to relevant authorities for exemption only the grouping crosses the threshold value or immediately initiate this procedure for future potential use.
EMIR: TRN and UTI
- Category: EMIR
There is no requirement to ensure that the TRN reported under EMIR has the same value as the Transaction Reference Number reported under MiFID.
EMIR contains also a requirement to assign a Unique Trade Identifier (UTI) which is unique but the issues how it should be generated or by whom are not specified legally.
EMIR reporting compliance strategy - delegated reporting
- Category: EMIR
When it comes to EMIR reporting compliance strategy the fundamental choice for market participants is whether to report derivatives themselves or to delegate reporting to their counterparty or another service provider.
 Registered Trade Repositories | [ ] | 167 kB |
Derivatives reporting - the ECC approach for backloading
- Category: EMIR
On 12th February 2014 derivatives market participants are required to be fully prepared to backload existing trades. Practical arrangements enabling this elaborate operation are just being worked out by clearing houses.
Auction calendar improvements: is 30 September better than 28 February?
- Category: Auctions of CO2 allowances
Auctioning Regulation November 2013 amendments are rather technical, but not entirely.
ACER's list of standardised and non-standardised contracts - indispensable tool for wholesale energy market players
- Category: REMIT
From practical point of view the important task for market participant when it comes to REMIT reporting will be the qualification whether the contract is standardised or not.
The ACER' list of standardised wholesale energy contracts would specify types of contracts for which standard reporting is mandatory.
Decisive for the reporting as standardised or non-standardised contract will be the fact whether a contract is or is not listed in the Agency's REMIT database.
All non-listed energy commodity contracts would be considered non-standardised and are to be reported with the non-standard reporting form, but including a copy of the contract as such in order to enable the Agency to revert to it in the market monitoring of wholesale energy markets in case of suspicious behaviours.
Secondary trading platform for long term transmission rights - a new business opportunity
- Category: Network Codes
Network Code on Forward Capacity Allocation - ENTSO-E final proposal of 1 October 2013 made important business choices with respect to the role of transmission system operators in the secondary trading.
 Business resume on transmission rights - ENTSO-E final proposal of 1 October 201 | [Business Resume on transmission rights - ENTSO-E final proposal for Network Code on Forward Capacity Allocation of 1 October 2013] | 28 kB |
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.