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
ISDA, FIA, GFMA, CMC, CMCE Respond to IOSCO on Best Practices for OTC Commodity Derivatives
ISDA, FIA, the Global Financial Markets Association (GFMA), the Commodity Markets Council (CMC) and the Commodity Markets Council Europe (CMCE), have responded to the International Organization of Securities Commissions' (IOSCO) consultation report on best practices for over-the-counter (OTC) commodity derivatives...
Joint Response to 2026 US G-SIB Surcharge Proposal
On June 18, ISDA, the Securities Industry and Financial Markets Association and the Institute of International Finance submitted a joint response to US agencies on proposed changes to the surcharge for global systemically important banks (G-SIBs). The associations welcome the...
Eyeing the Basel III Finish Line
An effective regulatory capital framework relies on multiple ingredients, from appropriate drafting to rigorous testing and consultation. Even minor calibration distortions can inflate capital requirements, which could negatively affect the capacity of banks to support deep and liquid markets, with...
Joint Comment Letter on Basel III Endgame Proposal
The Institute of International Finance (IIF), the International Swaps and Derivatives Association, Inc. (ISDA) and the Securities Industry and Financial Markets Association (SIFMA) today submitted a joint comment letter to the Board of Governors of the Federal Reserve System, the...