Delivery of European Union Allowances (EUAs) with expiry in December 2015 is approaching: Expiration Day for the contract NEDEC5 is December 14, 2015.
Nasdaq Clearing would like to remind its members of the following:
- Trading and clearing of NEDEC5 closes at 18:00 CET on the Expiration Day.
- Net sellers shall add EU-100-5016825-0-9 to their Trusted Account List and transfers shall be confirmed through the delivery form provided here .
- Net sellers must ensure that they have completed delivery of all EUAs to the Clearing House's registry account prior to 19:00 CET on the Expiration Day.
- A failure to complete the full delivery in due time will constitute a Default Event.
- Net buyers shall have collateral to cover payment margin equal to the net settlement for NEDEC5 within 11:00 CET, December 15, 2015.
The Clearing House's registry account number for delivery is EU-100-5016825-0-9
The Margin Requirement for EUAs will increase considerably towards the Expiration Day as the contract's volatilitiy will increase and the contract' s correlations will be removed, giving no margin credits. The increased margins reflect the approaching settlement. The net sellers may pre-deliver Allowance Contracts in advance of the Expiration Day. Pre-delivered Allowance Contracts will reduce the net sellers' need to post extra collateral to cover the increased Margin Requirement.
For more details, please see Trading and Clearing Rules Appendix 2 - Contract Specifications, part B, chapter 3 .
For further information, please contact Clearing & Collateral Management:
E-mail: clearing@nasdaq.com
Phone: +46 8 405 6880
