Template:M summ EUA Annex Adjustment Event: Difference between revisions

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! Event !! What it is !!  Who does what !! Who bears loss
! Event !! What it is !!  Who does what !! Who bears loss
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| {{euaprov|Abandonment of Scheme}} || EU gives up on Emissions Trading || Either party terminates on notice. Repay any prepaid amounts or premia || Walk away (I know, I know, it makes no sense. Don’t @ me folks)
| {{euaprov|Abandonment of Scheme}} || EU gives up on Emissions Trading || Either party terminates on notice. Repay any prepaid Forward Purchase consideration or Option premia. || Walk away (I know, I know, it makes no sense. Don’t @ me folks)
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| {{euaprov|Settlement Disruption Event}} || External {{isdaprov|Force Majeure}} type event prevents settlement. || Settlement suspended. No {{euaprov|Cost of Carry Amount}} payment. If continues for 9 {{euaprov|Delivery Business Day}}s or runs over a {{euaprov|Reconciliation Deadline}} either party can designate {{euaprov|Illegality}}, terminate the trade and either pay the {{euaprov|Close-out Amount}} or cancel and walk away. || Unless you specified {{euaprov|Payment on Termination for Settlement Disruption}}, just walk away. (Don’t @ me).
| {{euaprov|Settlement Disruption Event}} || External {{isdaprov|Force Majeure}} type event prevents settlement. || Settlement suspended. No {{euaprov|Cost of Carry Amount}} payment. If continues for 9 {{euaprov|Delivery Business Day}}s or runs over a {{euaprov|Reconciliation Deadline}} either party can designate {{euaprov|Illegality}}, terminate the trade and either pay the {{isdaprov|Close-out Amount}} or cancel and walk away. || Unless you specified {{euaprov|Payment on Termination for Settlement Disruption}}, just walk away. (Don’t @ me).
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| {{euaprov|Suspension Event}} || {{Registry}} suspends operating or there is an {{euaprov|Administrator Event}}. || {{euaprov|Receiving Party}} pays {{euaprov|Cost of Carry Amount}}.|| Note: {{euaprov|Suspension Event}}s trump {{euaprov|Settlement Disruption Event}}s. Unless you specified {{euaprov|Payment on Termination for Suspension}}, just walk away. (Don’t @ me).
| {{euaprov|Suspension Event}} || {{euaprov|Registry}} suspends operating or there is an {{euaprov|Administrator Event}}. || {{euaprov|Receiving Party}} pays {{euaprov|Cost of Carry Amount}}.|| Note: {{euaprov|Suspension Event}}s trump {{euaprov|Settlement Disruption Event}}s. Unless you specified {{euaprov|Payment on Termination for Suspension}}, just walk away. (Don’t @ me).
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| {{euaprov|Fungibility Event}} || {{euaprov|Phase 3}} {{euaprov|Allowances}} not exchangeable for {{euaprov|Phase 4}} Allowances or no longer fu[[n]]gible. || Dunno but is isn’t a {{euaprov|Settlement Disruption Event}} || You will have to agree this among yourselves.
| {{euaprov|Fungibility Event}} || {{euaprov|Phase 3}} {{euaprov|Allowances}} not exchangeable for {{euaprov|Phase 4}} Allowances or no longer [[fungible]]. || Dunno but is isn’t a {{euaprov|Settlement Disruption Event}} || You will have to agree this among yourselves.
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Revision as of 14:17, 25 January 2023

JC’s guide to Allowance Disruption
Event What it is Who does what Who bears loss
Abandonment of Scheme EU gives up on Emissions Trading Either party terminates on notice. Repay any prepaid Forward Purchase consideration or Option premia. Walk away (I know, I know, it makes no sense. Don’t @ me folks)
Settlement Disruption Event External Force Majeure type event prevents settlement. Settlement suspended. No Cost of Carry Amount payment. If continues for 9 Delivery Business Days or runs over a Reconciliation Deadline either party can designate Illegality, terminate the trade and either pay the Close-out Amount or cancel and walk away. Unless you specified Payment on Termination for Settlement Disruption, just walk away. (Don’t @ me).
Suspension Event Registry suspends operating or there is an Administrator Event. Receiving Party pays Cost of Carry Amount. Note: Suspension Events trump Settlement Disruption Events. Unless you specified Payment on Termination for Suspension, just walk away. (Don’t @ me).
Fungibility Event Phase 3 Allowances not exchangeable for Phase 4 Allowances or no longer fungible. Dunno but is isn’t a Settlement Disruption Event You will have to agree this among yourselves.

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