Template:M summ EUA Annex Suspension: Difference between revisions
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A {{euaprov|Suspension Event}} happens when the official infrastructure falls over so that the parties can’t transfer Allowances to settle a {{euaprov|Transaction}}. It is the fault of neither party — therefore to be distinguished from a {{euaprov|Failure to Deliver}}, which generally will be. {{Suspension v Settlement Disruption}} | A {{euaprov|Suspension Event}} happens when the official infrastructure falls over so that the parties can’t transfer Allowances to settle a {{euaprov|Transaction}}. It is the fault of neither party — therefore to be distinguished from a {{euaprov|Failure to Deliver}}, which generally will be. {{Suspension v Settlement Disruption}} | ||
A curiosity to which the [[JC]] has not yet found a plausible answer is why there is a [[Cost of Carry Amount - Emissions Annex Provision|Cost of Carry]] adjustment for {{euaprov|Suspension Event}}s that run over the scheduled {{euaprov|Delivery Date}}, but not for other, ordinary {{euaprov|Settlement Adjustment Event}}s (or for that matter, [[Failure to Deliver - Emissions Annex Provision|Failures to Deliver]]). | |||
Revision as of 15:32, 13 July 2022
A Suspension Event happens when the official infrastructure falls over so that the parties can’t transfer Allowances to settle a Transaction. It is the fault of neither party — therefore to be distinguished from a Failure to Deliver, which generally will be. While there is overlap between Settlement Disruption Events and Suspension Events (in that both are things beyond the parties’ control) Suspension Event, being narrower and related to the failure of official infrastructure, trumps Settlement Disruption Event where they both apply to the same event. Generalia specialibus non derogant, I suppose.
Note the Long-Stop Date concept, which references 1 June in a year following a set of seemingly arbitrary two-year spells in the Fourth Compliance Period and relates only to Suspension Events, not Settlement Disruption Events, and also appears to bear no relation at all to the Reconciliation Deadline at the end of April in each year.
We have compared Settlement Disruption Events and Suspension Events here.
A curiosity to which the JC has not yet found a plausible answer is why there is a Cost of Carry adjustment for Suspension Events that run over the scheduled Delivery Date, but not for other, ordinary Settlement Adjustment Events (or for that matter, Failures to Deliver).