Template:Commodity regulation: Difference between revisions
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Amwelladmin (talk | contribs) Created page with "You must have a taste for multi-dimensional chess if you want to understand what is required in the world of commodities, freight, weather derivatives and emission allow..." |
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*'''Actual [[emission allowances]]''', resembling as they do abstract financial instruments, are ''in'' scope. | *'''Actual [[emission allowances]]''', resembling as they do abstract financial instruments, are ''in'' scope. | ||
*'''Actual [[commodities]]''', being consumable, perishable, paint ’em yellow pass ’em off as copper, real-world things that people actually need to live, are ''out'' of scope. | *'''Actual [[commodities]]''', being consumable, perishable, paint ’em yellow ’n’ pass ’em off as copper, real-world things that people actually need to live, are ''out'' of scope. | ||
*'''[[Emission allowances derivatives]]''', whether physically- or cash-settled, are ''in'' scope. | *'''[[Emission allowances derivatives]]''', whether physically- or cash-settled, are ''in'' scope. | ||
*'''[[Cash-settled]] [[commodity derivatives]]''' — including ones where either party has an option to cash-settle — are in scope. | *'''[[Cash-settled]] [[commodity derivatives]]''' — including ones where either party has an option to cash-settle — are in scope. | ||
*'''[[Physically-settled]] [[commodity derivatives]]''' are ''out'' of scope ... ''unless'' they are traded on an EU [[trading venue]], (i.e, [[OTC]] [[physically-settled]] [[commodity derivatives]]) in which case they are in scope ... unless they are “wholesale energy products traded on an OTF that must be physically settled” - which case they are ''out'' of scope. | *'''[[Physically-settled]] [[commodity derivatives]]''' are ''out'' of scope ... ''unless'' they are traded on an EU [[trading venue]], (i.e, [[OTC]] [[physically-settled]] [[commodity derivatives]]) in which case they are in scope ... unless they are “wholesale energy products traded on an OTF that must be physically settled” - which case they are ''out'' of scope. | ||
*[[Physically-settled]] [[commodity derivatives]] which would otherwise be out of scope, if not used “for commercial purposes” and having “the characteristics of [[derivative]] [[financial instruments]]” are ''in'' scope. | *[[Physically-settled]] [[commodity derivatives]] which would otherwise be out of scope, if not used “for commercial purposes” and having “the characteristics of [[derivative]] [[financial instruments]]” are ''in'' scope. | ||
*'''[[Weather derivatives]], freight, inflation and economic indicator derivatives''' that can be cash-settled (it would be kind of fun having physically settled weather derivatives wouldn’t it) are ''in'' scope. | *'''[[Weather derivatives]], freight, inflation and economic indicator derivatives''' that can be [[cash-settled]] (it would be kind of fun having [[physically-settled]] weather derivatives wouldn’t it) are ''in'' scope. | ||
Revision as of 09:30, 16 June 2022
You must have a taste for multi-dimensional chess if you want to understand what is required in the world of commodities, freight, weather derivatives and emission allowances. To wit:
- Actual emission allowances, resembling as they do abstract financial instruments, are in scope.
- Actual commodities, being consumable, perishable, paint ’em yellow ’n’ pass ’em off as copper, real-world things that people actually need to live, are out of scope.
- Emission allowances derivatives, whether physically- or cash-settled, are in scope.
- Cash-settled commodity derivatives — including ones where either party has an option to cash-settle — are in scope.
- Physically-settled commodity derivatives are out of scope ... unless they are traded on an EU trading venue, (i.e, OTC physically-settled commodity derivatives) in which case they are in scope ... unless they are “wholesale energy products traded on an OTF that must be physically settled” - which case they are out of scope.
- Physically-settled commodity derivatives which would otherwise be out of scope, if not used “for commercial purposes” and having “the characteristics of derivative financial instruments” are in scope.
- Weather derivatives, freight, inflation and economic indicator derivatives that can be cash-settled (it would be kind of fun having physically-settled weather derivatives wouldn’t it) are in scope.