Page 2 of 2
The provisions regulating the practical functioning of the emission allowances registry rules can be found in a several legal instruments (see: Registry Regulation).
The new European Commission Regulation No 1193/2011 of 18 November 2011 (hereinafter referred to as “Regulation”) in its definite shape significantly elaborated on these issues in, first of all, Article 37.
When it comes to the scope of the new Regulation, it concerns allowances created for the trading period of the Union emissions trading scheme commencing on 1 January 2013 and subsequent periods (also concerns aviation allowances to be auctioned that were created for the trading period running from 1 January 2012 to 31 December 2012).
The Regulation makes also amendments – analogous to the ones foreseen in Article 37 - to the earlier legal instrument regulating the functioning of the registries in the second trading period namely Regulation No 920/2010 (for the text of Article 37 and other particulars see: ‘The protection of the good faith acquirer of emission allowances and finality of transactions in the new Registry Regulation – do they cause traders feel more comfortable?’).
From the above-mentioned judgment the general conclusion could be drawn that the KYC checks should not to be neglected, even in such seemingly safe for the buyer situation as that in which the spot-traded EUAs are deposited with the buyer account in advance of payment.
Another crucial issue decided in the said judgment is the problem of the nature of EUAs as a legal property. This issue is, however, worth of a separate remarks.