The Delivery of European Union Allowances (EUAs) with expiration in December 2018 is approaching: Expiration Day for the NEDEC8 contract is December 17, 2018.
Nasdaq Clearing would like to remind its members of the following:
- Clearing of NEDEC8 closes at 19:00 CET on the Expiration Day.
- Members that are net selling NEDEC8 must add EU-100-5016825-0-9 to their Trusted Account List, and transfers to the Clearing House must be confirmed through the delivery form provided here.
- Members that are net selling NEDEC8 must ensure that they have initiated delivery of all EUAs to the Clearing House's registry account prior to 19:00 CET on the Expiration Day.
- A failure to complete the full delivery in due time will constitute a Default Event.
- Net buyers must have collateral in place to cover a payment margin equal to the net settlement for NEDEC8 at 11:00 CET of December 17, 2018.
The Clearing House's registry account number for EUA-delivery is EU-100-5016825-0-9
The Margin Requirement for NEDEC8 will increase considerably towards the Expiration Day as the contract's volatility will increase and its correlations will be removed, giving no margin credits. The increased margins reflect the approaching settlement.
Members that are net selling NEDEC8 may deliver EUAs in advance of the Expiration Day: pre-delivered EUAs will reduce the net selling member's requirement for extra collateral to cover the increased Margin Requirement.
For more details, please see the Trading and Clearing Rules: Appendix 2 - Contract Specifications, part B, chapter 3.
For further information, please contact Clearing & Collateral Management:
E-mail: clearing@nasdaq.com
Phone: +46 8 405 6880