We propose how we will authorise and supervise certain firms intending to bid for emission allowances on the UK auction platform.
Why we are consulting
We are consulting to restore (with minor changes for post-Brexit jurisdiction) FCA rules for emission allowance auctions. These rules were deleted when the UK ended the Transition Period.
On 1 January 2021, the UK ETS replaced the UK’s participation in the EU emissions trading scheme (EU ETS). The legal framework required to support the UK ETS includes government legislation and amendments to the FCA Handbook and technical standards.
This consultation supports and supplements government legislation relating to bidding on the UK auction platform and trading allowances in the secondary market.
The proposed amendments will help ensure that the UK ETS functions in line with our objectives. They will maintain the role of UK MAR and MIFIR in promoting the integrity of the UK Auction Platform and the participation of firms on it being undertaken with transparency and integrity.
Who this applies to
- investment firms
- trading venues
It may also be of interest to firms who have commitments to obtain and surrender allowances under the UK ETS and who seek to obtain those allowances through intermediaries which participate in the auctions.
We seek feedback on the proposals in this CP by 6 April 2021.