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