There is also in the California cap-and-trade scheme a special provision for multiple beneficial holding relationships. If an entity with a beneficial holding relationship pursuant  serves as an agent for more than one principal then the entity must either:
(1) Submit a statement to the ARB, under penalty of perjury under the laws of the State of California, that it:
(A) Does not share information on one principal’s transaction strategies or holdings with any other principal with whom it has a beneficial holding relationship; and
(B) Conducts separate transactions for each principal with whom it has a beneficial holding relationship; or
(2) Submits a statement to the Executive Officer, that it has a direct or indirect corporate association with the principals with whom it has a beneficial holding relationship.

Taking into account that under EU ETS scheme the spot trading in emission allowances currently is not captured by the financial market regulations, in particular the MiFID Directive, consequently there is not at present at EU level harmonised legislation requiring of emission brokers (trading on the spot market) to observe such sophisticated procedures as described above. The EU legislation in that regard seems however to tend to financial regime in the near perspective, which would force the emission spot brokers trading in the EU ETS to become MiFID regulated investment firms.

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