ESMA_QA_847
27/04/2023
Subject Matter
Interpretation of "emission allowances" under C(4)
Original question
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.
Specific example: Derivatives on UKAs, recognized under UK ETS.
ESMA Answer
24-06-2024
Original language
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.
Status: Answer Published
Additional Information
Level 1 Regulation
Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- MDP
Additional Legal Reference
MiFID II main text, Annex I, Section C on financial instruments
Topic
* EMIR Reporting