Template:M summ EUA Annex Adjustment Event: Difference between revisions
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{| class="wikitable sortable" | {| class="wikitable sortable" | ||
|+ JC’s guide to Allowance | |+ JC’s guide to {{euaprov|Adjustment Event}}s in various {{euaprov|Allowance}} disruption scenarios | ||
|- | |- | ||
! Event !! What it is !! Who does what !! Who bears loss | ! Event !! What it is !! Who does what !! Who bears loss | ||
Latest revision as of 14:18, 25 January 2023
| 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. |