Myths and legends of the market
The JC’s guide to the foundational mythology of the markets.™
The various industry association crack emissions squads, colloquially known as Carbon Squad™ are semi-autonomous factions of semi-literate derivative ninjas who went rogue some time in the early 2010s, producing several iterations — each less comprehendible than the last — of emissions allowance trading documents.
There are three presently identified carbon squads sponsored, respectively, by the Knights of Aïessdiyé — ISDA is basically the Evil Galactic Empire of the financial markets, of course — EFET — who are basically avuncular Teutonic types with a taste for leather hunting trousers and fart jokes but who don’t really understand delta-hedging — and — IETA — sort of the rebel alliance of the market: free-spirited hippy types who care about the planet but haven’t the foggiest about option pricing of any kind.
What is curious is that, despite their sworn allegiance, their respective produicts = ISDA’s ISDA EU Emissions Annex, IETA.s IETA Master Agreement and EFET’s EFET Allowances Appendix, bear striking similarities in key places, and infuriating and inexplicable differences in others.
Carbon Squads seem fond, in particular, of the almost lost-to-history, “and then I woke up and it was all just a dream” tactic for extraordinary close-out