Title transfer collateral arrangement, emission allowances and SFTR - difficult coexistence
- Category: Emissions trading
The practical issue, maybe obvious, but I would like to know for certain: do SFTR apply to title transfer collateral arrangements in emission allowances?
Contracts 'that must be physically settled' under MiFID II - the role of balancing agreement with TSOs determined
- Category: MiFID
The ability test for "contracts which must be physically settled" (i.e. contracts falling under Sections C6 or C7 of the Annex I of the MiFID Directive, depending upon the place of execution) has taken its final - as it seems - shape.
Position limits: less than one-day divergence in delivery dates between OTC and an exchange-traded contract will not stop the EEOTC qualification
- Category: MiFID
Crafting the EU position limits legal framework seems to require an immense creativity along with an extreme caution on the part of European legislators.
Dealing with this unprecedented task reveals problems so far unknown, nevertheless of an utmost practical importance.
CSCF invalidated, but not entirely
- Category: Emissions trading
Judgment of the Court of Justice of the European Union of 28 April 2016 (C‑191/14, C‑192/14, C‑295/14, C‑389/14 and C‑391/14 to C‑393/14) creates dual system of the CSCF's application within the same, third trading period of the EU ETS, as both legal frameworks - the invalidated, and the new one - will be binding, however, for different years.
"Equivalent" does not always mean the same - remarks on the ground of the new financial instruments' definition
- Category: MiFID
Commission Delegated Regulation of 25.4.2016 implementing MiFID II represents the coup de grâce for the hotly-debated topic of equivalency as the criterion for the differentiation of forward contracts being financial instruments from other physically settled OTC derivatives.
This step change from purely formal criterion based on the literal wording of the contract to the objective metric dependent only on verifiable trading data seems, however, as it stands, unworkable for legal practitioners.
Systematic internalisers thresholds for emission allowances and emission derivatives determined in the MiFID II delegated Regulation
- Category: MiFID
As you certainly know emission allowances and emission derivatives are the asset classes for which - as from the MiFID II entry into force (3 January 2018) - the systematic internalisers' thresholds must be counted.
Numerical values of these thresholds became clear on 25 April 2016.