Requirements under the Scheme - Emissions Annex Provision
EU Emissions Allowance Transaction Annex to the 2005 ISDA Commodity Definitions
A Jolly Contrarian owner’s manual™
(d)(vi) in all its glory
See our natty emissions comparison table between the IETA, EFET and ISDA versions of emissions trading docs
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ISDA’s crack drafting squad™ to the max
Some of the more dismal drafting — outwardly innocuous, not having that “see if you can get through this tract without lashing out at nearby loved ones” vibe that characterises, say the regulatory initial margin credit support deed — but just lazy, fearful wordsmithing all the same, in a workaday provision, that should be uncontentious enough to invite unfussy, direct drafting.
For one thing, a Delayed Delivery Date is a sub-category of Delivery Date, so when you have said the latter you necessarily include the former: there is no need for that “Delivery Date or Delayed Delivery Date (as the case may be)” nonsense. Indeed, logically, one never needs to say, “as the case may be”: if the case isn’t, then it isn’t; if it is then it is. This puff of celery does nothing to advance matters.
What does this do?
This simply asks parties to an Emissions Transaction to make sure they have the necessary Holding Accounts — a “Specified Holding Account” is just the Holding Account you have specified in your Confirmation, so thanks for that one, gang — set up in the Union Registry and correctly configured so they can efficiently perform their settlement obligations. Have an account, add your counterparty’s account to your trusted list, and don’t behave like such a berk that you get thrown out of the system, or have transfers to and from your account frozen.
Knock on impacts
Note a failure to deliver by a Delivering Party won’t count as a formal Failure to Deliver if brought about because the Receiving Party has forgotten to set up a Holding Account, not added the Delivering Party’s Holding Account to its trusted account list, or generally behaved like such a berk that it gets thrown out of the system, or has its own account frozen.
- The JC’s famous Nutshell™ summary of this clause