ESMA · ESMA_QA_847 Answer Published
Interpretation of "emission allowances" under C(4)
- Regulation
- Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- MDP
- Article
- MiFID II main text, Annex I, Section C on financial instruments
- Topic
- * EMIR Reporting
- Submitted
- 2023-04-27
- Answered
- 2024-06-24
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.
Answer
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.
This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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