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Amwelladmin (talk | contribs) (Created page with "==={{euaprov|Continuing Settlement Disruption Event}}=== Some rather magical (in the sense of quite impenetrable) thinking from {{icds}} here, in the name of seeking a long-st...") |
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=== | ===Continuing Settlement Disruption Event=== | ||
Some rather magical (in the sense of quite impenetrable) thinking from {{icds}} here, in the name of seeking a long-stop to a {{euaprov|Settlement Disruption Event}}. Since there is this {{euaprov|Reconciliation Deadline}} concept — 30 April each year — by which time certain EUAs have to be surrendered, an ongoing settlement disruption can be a rather fraught thing. Emissions Allowances can suddenly, by government fiat, become worthless in a way that most other financial instruments cannot. | Some rather magical (in the sense of quite impenetrable) thinking from {{icds}} here, in the name of seeking a long-stop to a {{euaprov|Settlement Disruption Event}}. Since there is this {{euaprov|Reconciliation Deadline}} concept — 30 April each year — by which time certain EUAs have to be surrendered, an ongoing settlement disruption can be a rather fraught thing. Emissions Allowances can suddenly, by government fiat, become worthless in a way that most other financial instruments cannot. | ||
What happens? Well, after 9 delivery Business Days (or such shorter period as may be dictated by {{euaprov|Reconciliation Deadline}}s) the disruption is deemed to be an Illegality — I know, I know: it isn’t —and depending on whether Payment on Termination for Settlement Disruption applies, the parties either have to perform their obligations after all — odd, since the Settlement Disruption Event is ongoing, and Q.E.D. they can’t — or the transaction is basically voided ab initio and both parties walk away, refunding any [[put]] or [[call]] premiums they may previously have received. | What happens? Well, after 9 delivery Business Days (or such shorter period as may be dictated by {{euaprov|Reconciliation Deadline}}s) the disruption is deemed to be an Illegality — I know, I know: it isn’t —and depending on whether Payment on Termination for Settlement Disruption applies, the parties either have to perform their obligations after all — odd, since the Settlement Disruption Event is ongoing, and Q.E.D. they can’t — or the transaction is basically voided ab initio and both parties walk away, refunding any [[put]] or [[call]] premiums they may previously have received. |