Template:M comp disc EUA Annex Suspension

You will notice similarities between the way a Suspension Event and a Settlement Disruption Event. One can, and we do, bellyache about the way ISDA’s crack drafting squad™ goes about the task of rendering its fantastical ideas in the language of Shakespeare and Milton, but you can’t really fault them for consistency.

Here, in counterpoint to a normal Settlement Disruption Event if there is delayed performance the payment obligation is adjusted to include a Cost of Carry Amount. This a limited thing — some would say, arbitrarily limited — where regulatory/government fiat at the heart of the European Union stops the system functioning as it should, but not permanently. So, taking the Union Registry offline, an Administrator Event — but not some other regulatory driven externalities. It doesn’t include Abandonment of Scheme or an “executive decision” (however unlikely) that Phase 3 Allowances are no longer elibigle for surrender in Phase 4.