In line with domestic market requirements and international trends KELER offers CO2 emission unit settlement.
The settlement service of CO2 emission units can be used through investment companies (banks, brokers), similarly to securities settlement services.
Once the sales contract is made both the seller and the buyer depends on the willingness of the other party to perform, thus none of them can be sure that in line with the agreement it will get funds or the CO2 emission units. If the seller and the buyer directly settles the deal made, transfers are made at different times, thus the counterparty transferring first risks the entire value of the deal. This is the risk of so-called free of payment delivery. Settlement in line with the Delivery versus Payment principle is well-established for securities settlements and protects against the risk of free of payment delivery, in this case KELER is involved to ensure that CO2 emission units and funds are exchanged at the same time.
Operators and other market participants and investment companies can find more information on the service in the menu points relating to them.
Operators and other market participants
The attached documents describe for operators and other market participants the advantages of settlement with the involvement of investment companies and KELER.
- List of Hungarian Investment Service Providers
- Information for operators and other market participants (PDF) (PPS)
Information for operators and other market participants
Download (.ppt, 211 Kb)
Managing counterparty risk in CO2 deals
Investment Service Providers
The attached documents describe the target market of investment companies and the settlement model of KELER.
Information for investment service providers
Download (.ppt, 351 Kb)
DVP settlement of CO2 emission unit deals
Download (.pdf, 200 Kb)
List of Operators
Service contract for the OTC CO2 emission unit deals’ settlement
Clearing House Announcement on the deadlines to be applied for the submission of Settlement Instructions and the provision of coverages
Additional useful links:
- Emmisons Trading Department of the National Inspectorate for Environment and Water (OKTVF)
- Mininstry of Environment and Water International Climate Policy Department