ESMA_QA_847

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/847

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Regulatory Context

Regulation : MIF2

Level 1 Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- MDP

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: * EMIR Reporting

Subject Matter: Interpretation of “emission allowances” under C(4)

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Question

Submission Date: 27 April 2023

Does the financial instruments in Annex I, section C(4) include derivatives on emission allowances not recognized under the EU ETS, thus making these reportable under EMIR?

Specific example: Derivatives on UKAs, recognized under UK ETS.

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ESMA Answer

Answer Date: 24-06-2024

Yes. The definition of derivatives on emission allowances provided in Section C(4) of Annex I to MiFID II does not distinguish between emission allowances recognised for compliance under the EU ETS Directive, and other emission allowances. Therefore, derivatives on emission allowances not recognised for compliance under that Directive qualify as financial instruments.

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This document was automatically extracted from the ESMA EMIR Q&A database.