Commission Regulation (EU) No 1031/2010Show full title

CHAPTER VIII U.K. APPOINTMENT OF AUCTION PLATFORMS BY MEMBER STATES OPTING TO HAVE THEIR OWN AUCTION PLATFORM AND THEIR FUNCTIONS

Article 30 U.K. Appointment of any auction platform other than an auction platform appointed pursuant to Article 26(1) or (2)

1. Any Member State not participating in the joint action provided for in Article 26 of this Regulation may appoint its own auction platform for the auctioning of its share of the volume of allowances covered by Chapters II and III of Directive 2003/87/EC to be auctioned by means of two-day spot or five-day futures.

2. Any Member State not participating in the joint action provided for in Article 26 of this Regulation may appoint its own auction platform for the auctioning of its share of the volume of allowances covered by Chapters II and III of Directive 2003/87/EC to be auctioned by means of the futures or forwards, provided that these products are listed in Annex I to this Regulation.

3. Member States not participating in the joint action provided for in Article 26 may appoint the same auction platform or separate auction platforms for the auctioning of futures or forwards and two-day spot or five-day futures, respectively.

4. Any Member State not participating in the joint action provided for in Article 26, shall inform the Commission of its decision not to participate in the joint action but to appoint its own auction platform pursuant to paragraphs 1 and 2 of this Article within three months of the entry into force of this Regulation.

5. Any Member State not participating in the joint action provided for in Article 26 shall select its own auction platform appointed pursuant to paragraphs 1 and 2 of this Article on the basis of a selection procedure compliant with Union and national procurement law where a public procurement process is required by either Union or national law, respectively. The selection procedure shall be subject to all applicable remedies and enforcement procedures under Union and national law.

Any period of appointment of the auction platforms referred to in paragraphs 1 and 2 shall be no longer than three years renewable for no more than a further two years.

The appointment of the auction platforms referred to in paragraphs 1 and 2 shall be subject to listing the auction platform concerned in Annex III pursuant to paragraph 7. It shall not be implemented before the entry into force of the listing of the auction platform concerned in Annex III as provided for in paragraph 7.

6. Each Member State not participating in the joint action provided for in Article 26 but opting to appoint its own auction platform pursuant to paragraphs 1 and 2 of this Article shall provide the Commission with a complete notification containing all of the following:

(a) the identity of the auction platform it proposes to appoint indicating whether the same auction platform or separate auction platforms shall auction the futures or forwards, and two-day spot or five-day futures, respectively;

(b) the detailed operative rules that would govern the auction process to be conducted by the auction platform(s) it proposes to appoint, including the contractual provisions concerning the appointment of the auction platform concerned including the any clearing system(s) and settlement system(s) connected to the proposed auction platform stipulating the terms and conditions governing the structure and level of fees, collateral management, payment and delivery;

(c) the proposed bidding windows, individual volumes, auction dates indicating the occurrence of relevant public holidays, as well as the auctioned product, payment and delivery dates of the allowances to be auctioned in individual auctions in a given calendar year and any other information necessary for the Commission to assess whether the proposed auction calendar is compatible with the auction calendar of the auction platforms appointed pursuant to Article 26(1) or (2) as well as other auction calendars proposed by other Member States not participating in the joint action provided for in Article 26 but opting to appoint their own auction platforms;

(d) the detailed rules and conditions on surveying and supervising the auctions to which its proposed auction platform shall be subject pursuant to Article 35(4), (5) and (6) as well as the detailed rules protecting against money laundering, terrorist financing, criminal activity or market abuse, including any remedial measures or sanctions;

(e) the detailed measures put in place to comply with Article 22(4) and Article 34 regarding the appointment of the auctioneer.

The notification shall demonstrate the compatibility with the provisions of this Regulation and conformity with the objectives in Article 10(4) of Directive 2003/87/EC.

A notifying Member State may modify its original notification prior to the listing referred to in paragraph 7 of this Article.

Each notifying Member State shall present its original and modified notification to the Committee referred to in Article 23(1) of Directive 2003/87/EC.

7. Auction platforms other than those appointed pursuant to Article 26(1) or (2), the Member States appointing them, their term of appointment, and any applicable conditions or obligations, shall be set out in Annex III where the requirements of this Regulation and the objectives of Article 10(4) of Directive 2003/87/EC are satisfied. The Commission and the Committee provided for in Article 23(1) of Directive 2003/87/EC shall act solely on the basis of these requirements and objectives and shall have full regard to any reports made by the auction monitor pursuant to Article 25(4) of this Regulation.

In the absence of any listing provided for in the first subparagraph, a Member State not participating in the joint action provided for in Article 26 but opting to appoint its own auction platform pursuant to paragraphs 1 and 2 of this Article shall use the auction platforms appointed pursuant to Article 26(1) or (2) to auction its share of the allowances that would have otherwise been auctioned on the auction platform to be appointed pursuant to paragraphs 1 or 2 of this Article in the period until the expiry of three months after the entry into force of the listing provided for in the first subparagraph.

8. Any Member State not participating in the joint action provided for in Article 26 but opting to appoint its own auction platform pursuant to paragraphs 1 and 2 of this Article may join the joint action provided for in Article 26, pursuant to Article 26(6).

The volume of allowances that were scheduled to be auctioned on an auction platform other than the auction platforms appointed pursuant to Article 26(1) or (2) shall be spread evenly over the auctions conducted by the relevant auction platform appointed pursuant to Article 26(1) or (2).

Article 31 U.K. Functions of auction platforms other than the auction platforms appointed pursuant to Article 26(1) or (2)

1. Any auction platform appointed pursuant to Article 30(1) shall carry out the same functions as the auction platform appointed pursuant to Article 26(1) as provided for in Article 27 except for Article 27(1)(c) on the auction calendar which shall not apply.

2. Any auction platform appointed pursuant to Article 30(2) shall carry out the same functions as the auction platforms appointed pursuant to Article 26(2) as provided for in Article 28 except for Article 28(1)(c) on the auction calendar which shall not apply.

3. The provisions on the auction calendar provided for in Article 8(1), (2) and (3), Articles 9, 10, 12, 14 and 32 shall apply to the auction platforms appointed pursuant to Article 30(1) or (2).

Article 32 U.K. Auction calendar for any auction platform other than the auction platforms appointed pursuant to Article 26(1) or (2)

1. The volume of allowances covered by Chapter III of Directive 2003/87/EC auctioned in individual auctions conducted by an auction platform appointed pursuant to Article 30(1) or (2) of this Regulation shall be no greater than 20 million allowances and no less than 10 million allowances; save where the total volume of allowances, covered by Chapter III of Directive 2003/87/EC, to be auctioned by the appointing Member State is less than 10 million in a given calendar year, in which case the allowances shall be auctioned in a single auction per calendar year.

2. The volume of allowances covered by Chapter II of Directive 2003/87/EC auctioned in individual auctions conducted by an auction platform appointed pursuant to Article 30(1) or (2) of this Regulation shall be no greater than 5 million allowances and no less than 2,5 million allowances; save where the total volume of allowances, covered by Chapter II of Directive 2003/87/EC, to be auctioned by the appointing Member State is less than 2,5 million in a given calendar year, in which case the allowances shall be auctioned in a single auction per calendar year.

3. The total volume of allowances covered by Chapters II and III of Directive 2003/87/EC to be auctioned by all auction platforms appointed pursuant to Article 30(1) or (2) of this Regulation collectively shall be distributed evenly over any given calendar year, except that the volume auctioned in auctions held in August of each year shall be half of the volume auctioned in other months of the year.

4. The auction platforms appointed pursuant to Article 30(1) or (2) of this Regulation shall determine and publish the bidding windows, individual volumes, auction dates as well as the auctioned product, payment and delivery dates of the allowances, covered by Chapters II and III of Directive 2003/87/EC, to be auctioned in individual auctions each year, after the determination and publication pursuant to Articles 11(1) and 13(1) of this Regulation by the auction platforms appointed pursuant to Article 26(1) and (2) of this Regulation, by 31 March of the previous year, or as soon as practicable thereafter, having previously consulted the Commission and obtained its opinion thereon. The auction platforms concerned shall take the utmost account of the Commission’s opinion.

Published calendars referred to in the first subparagraph shall be consistent with any relevant conditions or obligations listed in Annex III.

5. Where an auction conducted by an auction platform appointed pursuant to Article 30(1) or (2) is cancelled by the auction platform pursuant to Article 7(5) or (6) or Article 9, the auctioned volume shall be distributed evenly either over the next four auctions scheduled on the same auction platform or, if the auction platform concerned conducts less than four auctions in a given calendar year, over the next two auctions scheduled on the same auction platform.

Article 33 U.K. Review of this Regulation

Upon delivery of the annual consolidated report drawn up by the auction monitor pursuant to Article 25(2) which shall be delivered no later than 31 December 2014, the Commission shall review the arrangements provided for in this Regulation including the operation of all auction processes.

The review shall analyse the experience acquired with regard to the interaction between the auction platforms appointed pursuant to Article 30(1) or (2) and those appointed pursuant to Article 26(1) or (2) as well as the interaction between the auctions and the secondary market.

The review shall be carried out in consultation with Member States and stakeholders.

The Commission may put forward any measures deemed necessary to deal with any distortion or malfunctioning of the internal market or the carbon market arising from the arrangements under this Regulation, having regard to the outcome of the review, with a view to entry into force of such measures by 31 December 2016.