On September 15, 2022, ISDA co-signed a letter with seven other trade associations on the importance of safeguarding the EU Emissions Trading System (ETS) following recent proposals by the European Parliament, which risk undermining the efficient functioning of the EU ETS and put at risk the EU’s ability to meet its climate goals in an efficient manner.
The letter raises concerns about support by members of the European Parliament for amendments to limit participation in the EU ETS to compliance entities and financial intermediaries purchasing allowances on their behalf, amid unsubstantiated claims that rising energy prices are directly linked to speculative behavior by financial intermediaries. The letter points to evidence from the European Securities and Markets Authority in its report on the EU carbon market and the European Central Bank’s analysis on the role of speculation during the recent increase in EU emissions allowance prices, which demonstrate that recent spikes in the carbon price have been driven by changing market fundamentals. The letter notes that a diverse ecosystem of participants ensures that the EU’s carbon market is resilient, less costly to access, and better equipped to provide hedging and risk management solutions to companies, and urges co-legislators not to impose the restrictions.
Documents (1) for Trade Associations Sign Letter on Safeguarding the EU ETS
Latest
FRTB Impact on Correlation Trading
The capitalization of the correlation trading portfolio (CTP) under the Fundamental Review of the Trading Book will have an adverse economic impact for users of these instruments. In particular, there is a lack of clarity and consistency in the application...
ISDA In Review – September 2025
A compendium of links to new documents, research papers, press releases and comment letters published by ISDA in September 2025.
A Path to Greater CFTC-SEC Alignment
Earlier this week, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) held a roundtable on regulatory harmonization – an initiative we wholeheartedly support. The US regulatory framework has evolved over time to facilitate financial markets...
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.