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
Revised Sub-Annex A to the Commodity Definitions
On April 28, 2025, ISDA published a new version of Sub-Annex A to the 2005 ISDA Commodity Definitions (Sub-Annex A). Sub-Annex A contains a list of Commodity Reference Prices (CRPs) and related terms that parties can reference in over-the-counter derivatives...
Response to FASB on KPIs for Business Entities
On April 30, ISDA submitted a response to the Financial Accounting Standards Board’s (FASB) proposal on financial key performance indicators (KPIs) for business entities. In the response, ISDA addressed the implications of KPI standardization, its potential impact on financial reporting...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
Response on Commodity Derivatives Markets
On April 22, ISDA and FIA submitted a joint response to the European Commission’s (EC) consultation on the functioning of commodity derivatives markets and certain aspects relating to spot energy markets. In addition to questions on position management, reporting and...