Template:M comp disc EUA Annex Allowance Price

The same broad concept is dealt with as follows:

• ISDA: Allowance Purchase Price or Allowance Strike Price, as the case may, from time to time, be, though the JC uses the term “Allowance Price” to cover both).
• EFET: Contract Price
• IETA: Allowance Price

Well, this is embarassing. There’s no such term in the ISDA Emissions Annex, despite the term being used in it (well, once). Whoopsie. By context it could refer to either an Allowance Strike Price — for an Option — or an Allowance Purchase Price — for a Forward. It is the same concept as in the other Master Agreements. Since using it does away with a lot of “Allowance Purchase Price, in the case of a Allowance Forward Transaction, or Allowance Strike Price, in the case of an Allowance Option Transaction, as the case may be” you might think Allowance Price might have been a good innovation, and in any case it is one that the JC will shamelessly use to save the frightful confection set out above.