ESMA_QA_1506
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1506
Regulatory Context
Regulation : MIFIR
Level 1 Regulation: Markets in Financial Instruments Regulation (MiFIR) Regulation (EU) No 600/2014- MDP
Level 2 Regulation: No information available
Level 3 Regulation: No information available
Topic: ESMA70-1861941480-56 Questions and Answers on MiFIR reporting
Subject Matter: Reporting of Emission Allowances
Question
Submission Date: 11 July 2022
How should Trading Venues and SIs report emission allowances (i.e., European Union Allowances (EUAs) and European Union Aviation Allowances (EUAAs)) auctioned for the phase 4 of the EU Emission Trading System (ETS) (hereafter “phase 4 emission allowances” or derivatives thereof under MiFIR Article 27 and RTS 23?
ESMA Answer
Answer Date: 11-07-2022
[ESMA 70-1861941480-56 MiFIR data reporting Q&A, Q&A 19.1] The ISIN displayed on European Commission’s website to phase 4 emission allowances should be reported in FIRDS under RTS 23. Field 1 – Instrument identification code should be reported with ISIN EU000A2QMW50 for EU allowances and EU000A2QMW68 for EU aviation allowances. In case of derivatives having as underlying a phase 4 emission allowance, Field 26 – Underlying instrument code should be populated with EU000A2QMW50 for EU allowances and EU000A2QMW68 for EU aviation allowances. The table below clarifies the different reporting scenarios based on the type of emission allowance. The fields displayed in the tables are all RTS 23 fields that are applicable to emission allowances or derivatives thereof in the FIRDS CFI validation rules. Example 1 – Reporting of phase 4 EUA (spot)
RTS 23 Field number
RTS 23 Field name
Value
Content to be reported[1]
1
Instrument identification code
EU000A2QMW50
ISIN displayed on the European Commission’s website.
2
Instrument full name
EUA Allowance Units Phase 4
3
Instrument classification
ITNXXX
4
Commodities or emission allowance derivative indicator
No
5
Issuer or operator of the trading venue identifier
LEI
LEI of the regulated market appointed as an auction platform pursuant to COMMISSION REGULATION (EU) No 1031/2010’
6
Trading Venue
Segment {MIC} of Trading Venue
8
Request for admission to trading by issuer
No
11
Date of admission to trading or date of first trade
10/04/2022
12
Termination date
10/04/2024
13
Notional currency 1
EUR
Example 2 – Reporting of a future on phase 4 emission allowance
RTS 23 Field number
RTS 23 Field name
Value
Content to be reported[2]
1
Instrument identification code
{ISIN} of financial instrument
2
Instrument full name
XXX FUTURE ON EEA
3
Instrument classification
FCNPSX
4
Commodities or emission allowance derivative indicator
Yes
5
Issuer or operator of the trading venue identifier
{LEI} of issuer
6
Trading Venue
Segment {MIC} of Trading Venue
8
Request for admission to trading by issuer
No
11
Date of admission to trading or date of first trade
10/04/2022
12
Termination date
10/04/2023
13
Notional currency 1
EUR
24
Expiry date
10/04/2023
25
Price Multiplier
1000
Lot size /contract size , e.g. for exchange traded derivatives, 1 lot corresponds to 1,000 allowances or 1,000 tCO2. EUAs
26
Underlying Instrument code
EU000A2QMW50
ISIN displayed on the European Commission’s website.
28
Underlying index name
Optional
29
Term of the underlying index
Optional
34
Delivery type
‘PHYS’
35
Base product
ENVR
36
Sub product
EMIS
37
Further sub product
EUAE
38
Transaction type
OTHR
39
Final price type
EXOF
Example 3 – Reporting of option on a future on phase 4 emission allowance
RTS 23 Field number
RTS 23 Field name
Value
Content to be reported[3]
1
Instrument identification code
{ISIN} of financial instrument
2
Instrument full name
XXX OPTION ON FUTURE - EEA
3
Instrument classification
OPEFPS
4
Commodities or emission allowance derivative indicator
Yes
5
Issuer or operator of the trading venue identifier
{LEI} of issuer
6
Trading Venue
Segment {MIC} of Trading Venue
8
Request for admission to trading by issuer
No
11
Date of admission to trading or date of first trade
10/04/2022
12
Termination date
10/04/2023
13
Notional currency 1
EUR
24
Expiry date
10/04/2023
25
Price Multiplier
1000
Lot size /contract size , e.g. for exchange traded derivatives, 1 lot corresponds to 1,000 allowances or 1,000 tCO2. EUAs
26
Underlying Instrument code
{ISIN} of the underlying future contract
ISIN of the underlying future
28
Underlying index name
Optional
29
Term of the underlying index
Optional
30
Option type
‘PUTO’
31
Strike price
90.00
Price at which the underlying is purchased or sold when the option is exercised
31
Strike price currency
‘EUR’
33
Option exercise style
‘EURO’
34
Delivery type
‘PHYS’
35
Base product
ENVR
36
Sub product
EMIS
37
Further sub product
EUAE
38
Transaction type
OTHR
39
Final price type
EXOF
[1] In case of further clarification of the description of the fields are needed these are provided in this column
[2] In case of further clarification of the description of the fields are needed these are provided in this column
[3] In case of further clarification of the description of the fields are needed these are provided in this column
This document was automatically extracted from the ESMA EMIR Q&A database.