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 amounts or 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 Settlement 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 Event |
Template: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.
|