1-Hour Program

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Overview

The underlying rationale for emissions trading is that derivatives could save the planet…or could be an influence for good at the very least. Emissions trading is an asset class which is purely a creature of regulation, and that leads to many intricacies, nuances, and traps for the unwary, which are not found in other types of product or derivative. Interest in emissions credit for trading, and as underlying assets for OTC derivatives and structured products on the rise again. During this briefing, Mayer Brown LLP Derivatives & Structured Products partners, Edmund Parker, based in London, and Matthew F. Kluchenek, based in the US, will discuss key issues including:

  • The underlying asset: relevance of the Kyoto Protocol; the “COPs”; and EU, UK and US climate change action initiatives (10 minutes)
  • Emissions trading regimes (10 minutes)
  • ISDA, EFET, and EFET documentation platforms (10 minutes)
  • Regulatory treatment of emissions products in the US (i.e., as Swaps, Futures or Forwards) (10 minutes)
  • Using emissions allowances as an underlying asset in structured products, including property rights issues in different EU Member States, as well as issues with taking security (10 minutes)
  • Awareness of fraud issues (10 minutes)

 

Program Level: Update

Intended Audience: In-house counsel, outside attorneys, compliance, finance and other allied professionals involved in emissions-linked trading

Prerequisites: None

Advanced Preparation: None

Credit Details