European Union Allowances (EUA) as margin credits

    Subject to approval and configuration by the respective Clearing Member, EUAs can be used as margin credits to offset margin requirements for Initial Margin Spot Market (IMSM) and/or Initial Margin Derivatives (SPAN). For Initial Margin Derivatives (SPAN) a margin credit is only calculated for the equivalent credit value of a net short position in EUA Futures. Furthermore, the credit value from EUAs is capped at 20% of the total margin requirement of a trading participant or to a EUR value as defined by the Clearing Member.

    ECC will value the provided EUAs as margin credits by using the current market value and applying an appropriate haircut of currently 35% to establish the eligible margin credit value.

    The current haircut for EUAs can be found here.

    To apply for the usage of EUA as margin credit please use the ECC Form "O07a Application form Emission Rights as Margin Credit".

    A retransfer of EUAs from the ECC Collateral Registry Account may be requested by the ECC Member Area either to a registry account of the trading participant or to the ECC registry account to fulfil delivery obligations for spot and derivatives trading.

    In addition, it must be ensured that the cooperating Clearing Member agrees to release the EUAs by signing the form "O07b Release Emission Rights as Margin Credit".

    More details are available at the ECC Clearing Circular 3/2022.

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