The CO2 Market 15.01.2019

Implications on MIFID II rules on the carbon market

Today, 14.01.2019, the CO2 certificate closed at the ICE ECX stock exchange in London at a price of 22.58 Euro / EUA. Participants on this exchange attributed a slight decrease of 0.7% compared to Friday, 11.01.2019, to low energy and gas prices. Tomorrow, a higher volatility is expected as a result of the political news, particularly the vote on the Brexit Agreement in the British Parliament.

Starting from 1st January 2019, all corporations that participate in financial transactions, including trading of emission allowances in the EU ETS, should be issued the Legal Entity Identifier (LEI).

The Legal Entity Identifier is a unique identification of legal entities participating in financial instruments. The Markets in Financial Instruments Regulation (“MIFIR”) came into force forming part of the wider legislative package introduced by the Markets in Financial Instruments Directive 2014/65/EU (“MiFID II”). Amongst other matters, it introduces requirements for entities participating in financial transactions to be identified through a Legal Entity Identifier (“LEI”) code.

The Local Operating Units (or LOUs) are issuing LEI numbers, and you have to apply there to get your LEI number: https://www.lei.direct/lei-services/your-lei-in-3-steps/

If you need advice in acquiring LEI, please get in contact with us. If you already acquire it, please send us for subsequent CO2 trades.

For information related to the set of documents requested before trading, we remain at your disposal.

Source: European Commission, Brussels and AitherCO2, London