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
Response to BoE on Systemic Stablecoins
On February 10, ISDA responded to the Bank of England’s (BoE) consultation on a proposed regulatory regime for sterling-denominated systemic stablecoins. In the response, ISDA highlights that any regulatory framework should be assessed through the lens of prudent risk management...
SwapsInfo Full Year 2025 and Q4 2025
Trading activity in interest rate derivatives (IRD) and credit derivatives increased in 2025, reflecting shifting monetary policy expectations and broader market conditions. IRD traded notional rose by about 46% year-on-year, led by an increase in overnight index swaps (OIS). Index...
ISDA ALF: Katherine Tew Darras Opening Remarks
ISDA Annual Legal Forum London, February 11, 2026 Opening Remarks Katherine Tew Darras ISDA General Counsel Good morning and welcome to ISDA’s Annual Legal Forum. Thank you for joining us today and thanks to our platinum sponsors – Cleary...
Maintaining Focus on Basel III Endgame Recalibration
In its original form, the US Basel III endgame proposal would have resulted in disproportionate increases in capital for trading book activities, forcing banks to make difficult choices about their participation in certain businesses. After two-and-a-half years, a revised proposal...