On February 15, ISDA co-signed a letter with nine other trade associations on the importance of protecting the EU emissions trading system (ETS) from damaging interventions either through position limits or some other action, ahead of the publication of the European Securities and Markets Authority’s (ESMA) final report on the EU carbon market.
The letter expresses concern about the possibility of such an initiative and the unintended consequences that could result. It comes on the back of the recent spike in energy and carbon prices, which has given rise to calls from several member states to crack down on speculation in the EU carbon markets. The letter points to recent evidence from the European Commission that there is no indication the ETS’s long-term price trajectory reflects anything more than market fundamentals. It is reinforced by a report published yesterday by Oxera, which concludes that the ETS is functioning well, not deviating from market fundamentals and producing outcomes consistent with EU climate policy objectives.
Documents (1) for Trade Associations Sign Letter on Protecting EU ETS from Damaging Interventions
Latest
Guidance for EU IM Model Application for ISDA SIMM®
EU financial and non-financial EU counterparties exchanging IM based on ISDA SIMM® should have already submitted an initial application for authorisation to their competent authority (CA), and ECB if applicable. If not, they should do so timely to ensure continued...
Joint Response on Stress Testing Framework
On February 23, ISDA, the Bank Policy Institute, the American Bankers Association, the Financial Services Forum, the Securities Industry and Financial Markets Association and the US Chamber of Commerce jointly responded to the US Federal Reserve’s consultation on the stress...
Joint Letter on Italian 2026 Budget Law
On February 23, ISDA, the Association for Financial Markets in Europe and the International Securities Lending Association jointly sent a letter to the Italian tax authorities about changes to withholding tax on dividends made in the 2026 budget law, which...
Response to FCA on UK MIFIR Consultation
On February 20, ISDA responded to the Financial Conduct Authority’s (FCA) consultation on improving the UK Markets in Financial Instruments Regulation (MIFIR) transaction reporting regime. The consultation aims to reduce the regulatory burden on firms, support sustained economic growth in...