Internal Electricity Market - balancing arrangements at the crossroads
- Category: Network Codes
The future shape of the European balancing market is not an obvious choice, since the surveys highlighted the great diversity of arrangements throughout Europe in that regard.
Although the balancing can be perceived as a technical only market, its design in many respects will influence on economic decisions in many connected areas.
Statistics of the California November 14, 2012 auction and publication of the Reserve Price for 2013
- Category: California cap-and-trade
Interesting parameter is that compliance entities bought 97.0% of 2013 vintage allowances and 91.0% 2015 vintage allowances at California November 14, 2012 auction. It appears to show that speculative trading in California allowances has the potential to rise.
Legal flaws of the EU ETS compliance regime for aviation
- Category: General
The growing legislative mess in the area of the EU ETS legislation has the potential to evoke the feeling of disappointment. The recent instances of the above can be the political tensions on account of the so-called back-loading as well as the European Commission’s Proposal for a Decision of the European Parliament and of the Council “derogating temporarily from Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community“ (2012/328 (COD)) regarding the status of aviation.
MiFID II emission allowances position reporting – important regulatory changes
- Category: MiFID
For the purposes of MiFID II reporting, operators with compliance obligations under Directive 2003/87/EC are categorised as a distinct group of traders within a broader spectrum of members, participants (and clients) of the regulated markets, MTFs or OTFs.
MiFID II emission allowances position limits – threefold means of regulatory influence
- Category: MiFID
It is interesting that the architecture envisioned has, in its primary form, a decentralised character i.e. the respective decisions on the introduction of positions limits are to be taken at the level of the trading venue. It is to be borne in mind that pursuant to MiFID II legislative design the above developments will also be relevant for commodity derivatives as well as emission allowances and derivatives thereof. Market strategies mustn’t neglect that fact.
Will forwards regarding banned ERUs be allowed in New Zealand Emissions Trading Scheme after the ban date?
- Category: CER, ERU
Among the options currently considered in public consultations no units entering the New Zealand Emission Unit Register after the ban date could be used to meet surrender obligations, regardless of forward contracts.
Main points of ACER’s 2nd Edition of Guidance on REMIT
- Category: REMIT
The company internal documentation and procedures on definitions of roles and responsibilities in the organisation (e.g. responsibilities for the REMIT requirements (centralised vs. decentralised), internal vs. external reporting lines, internal vs. external interfaces, provision of resources: human/technical IT Systems) resources), as well as the identification/assessment of concrete compliance risks will inevitable be in the first place the subject of the detailed scrutiny and examination of the relevant authorities in case of any suspected REMIT non-compliance.
 Best practice example of Urgent Market Messages UMM pursuant to ACER Guidelines, | [ ] | 29 kB |
Capacity markets vs. Internal Electricity Market – will State aid weapon be used?
- Category: Capacity Markets
Capacity mechanisms attempt to ensure that electricity undertakings (often suppliers) assume the responsibility to provide or pay for generation capacity which they would not otherwise do, or at least not to the same extent, considering only their own commercial interests. According to the European Commission’s stance it is possible that such a mechanism constitutes a public service obligation and involve State aid. The above notwithstanding, UK prepares for capacity auctions from 2014 for delivery of capacity in the winter of 2018/19, if needed.
Obligation to trade on regulated markets, MTFs or OTFs – new element of the emission market financial infrastructure
- Category: MiFID
MiFIR (Markets in Financial Instruments Regulation) will for the first time require certain derivatives contracts – those that are both cleared through a central counterparty (CCP) and deemed sufficiently liquid – to trade on a ‘trading venue’.
MiFID II exemption for EUAs compliance buyers – EP report of 5 October 2012
- Category: MiFID
Specific MiFID exemption has been designed for persons which own or directly operate installations subject to Directive 2003/87/EC, but the issue whether it is properly formulated is open.
California carbon leakage list
- Category: California cap-and-trade
Leakage refers to a reduction in emissions of GHGs within the California State that is offset by an increase in GHG emissions outside the State. Risk of leakage is highest for industries in which production is highly “emissions intensive” (leading to high compliance costs) and trade exposed (i.e., that face competition from out-of-state producers).
| California carbon leakage list.pdf | [ ] | 73 kB |
Rules on client-as-agent model specified by ESMA in EMIR RTS on indirect clearing arrangements
- Category: EMIR
Regulatory Technical Standards prejudge that facilitating indirect clearing arrangements is not mandatory for clearing members – the contentious issue as yet.