Chapter II, Article 7 · Commission Delegated Regulation (EU) 2023/2830

Contents

Article 7Auction clearing price and resolution of tied bids#

1.The auction clearing price shall be determined upon closure of the bidding window.An auction platform shall sort bids submitted to it in the order of the price bid. Where the price of several bids is the same, those bids shall be sorted through a random selection according to an algorithm determined by the auction platform before the auction.

10.Where an auction of allowances covered by Article 11 is cancelled, the volume of allowances shall be distributed evenly over the next two auctions scheduled on the same auction platform.Where the volume of allowances from cancelled auctions referred to in the first subparagraph cannot be distributed evenly as referred to in that subparagraph in accordance with the rules on minimum volume bid set in Article 6(1), the Member State concerned shall auction those allowances in the next scheduled auction.From 1 January 2025, where an auction including allowances covered by Article 11 is cancelled, paragraph 9 shall apply.

2.The volumes bid shall be added up, starting with the highest bid price. The price of the bid at which the sum of the volumes bid matches or exceeds the volume of allowances auctioned shall be the auction clearing price.

3.All bids making up the sum of the volumes bid determined pursuant to paragraph 2 shall be allocated at the auction clearing price.

4.Where the total volume of successful bids determined pursuant to paragraph 2 exceeds the volume of auctioned allowances, the remaining volume of the auctioned allowances shall be allocated to the bidder that has submitted the last bid making up the sum of the volumes bid.

5.Where the total volume of bids sorted pursuant to paragraph 2 falls short of the volume of auctioned allowances, the auction platform shall cancel the auction.

6.Where the auction clearing price is significantly under the price on the secondary market prevailing immediately before and during the bidding window when taking into account the short-term volatility of the price of allowances over a defined period preceding the auction, the auction platform shall cancel the auction.

7.Before an auction is started, the auction platform shall determine the methodology for the application of paragraph 6, after having consulted the relevant contracting authorities referred to in Article 26(1) or Article 29(4), and notifying the competent national authorities referred to in Article 47.Between two bidding windows on the same auction platform, the auction platform concerned may modify the methodology referred to in the first subparagraph. It shall consult the relevant contracting authorities referred to in Article 26(1) or Article 29(4) and the competent national authorities referred to in Article 47 on the planned modifications without delay.The auction platform concerned shall take the utmost account of the opinion of the relevant contracting authority on the methodology referred to in this paragraph, where such an opinion has been provided.

8.Paragraphs 6 and 7 shall not apply to the auctioning of allowances referred to in Article 13 for a period of 2 months starting from the first auction of those allowances.The auction platform may extend the period referred to in the first subparagraph by 2 months, after having consulted the relevant contracting authorities referred to in Article 26(1) and notifying the competent national authorities referred to in Article 47, provided that such extension is necessary to ensure that a sufficiently liquid secondary market is in place for the application of paragraph 6.The auction platform concerned shall take the utmost account of the opinion of the relevant contracting authorities on the extension referred to in this paragraph, where such an opinion has been provided.

9.Where an auction of allowances referred to in Article 10 or 13 is cancelled, the volume of allowances shall be distributed evenly over the next four auctions scheduled on the same auction platform.Where the volume of allowances from cancelled auctions referred to in the first subparagraph cannot be distributed evenly as referred to in that subparagraph in accordance with the rules on minimum volume bid set out in Article 6(1), the Member State concerned shall auction those allowances over fewer than four auctions.Where an auction that already includes volumes from a previously cancelled auction is cancelled, its volume shall be spread in accordance with the first and second subparagraphs starting from the first auction which is not subject to other adjustments due to previous cancellations.

Defined terms · 43

Show every defined term

affiliate undertaking
means affiliate undertaking as defined in Article 2, point (12), of Directive 2013/34/EU;
auction platform
means any public or private entity appointed to carry out the tasks referred to in Articles 27, 28, 30 and 31;
auction process
means the process encompassing the setting of the auction calendar, the procedures for admission to bid, the procedures for submission of bids, the conduct of the auction, the calculation and announcement of the auction results, the arrangements for payment of the price due and transfer of auction proceeds, delivery of the allowances and management of the collateral needed to cover any transaction risks, as well as the surveillance and monitoring of the proper conduct of the auctions by an auction platform;
auctioneer
means any public or private entity appointed to carry out the tasks referred to in Article 23;
beneficial owner
means beneficial owner as defined in Article 3, point (6), of Directive (EU) 2015/849;
bid
means an offer in an auction to acquire a given volume of allowances at a specified price;
bidding window
means the time period during which bids may be submitted;
central counterparty
means an entity that interposes either directly between an auctioneer and a bidder or its successor in title, or between intermediaries representing them, and acts as the exclusive counterparty to each of them guaranteeing the payment of the auction proceeds to the auctioneer or an intermediary representing it or the delivery of the auctioned allowances to the bidder or an intermediary representing it;
clearing
means all processes taking place before the opening of the bidding window, during the bidding window and after the closing of the bidding window until settlement, and involving the management of any risks arising during that interval, including during margining, netting, or novation, or any other services, possibly carried out by a clearing or settlement system;
clearing system
means an infrastructure connected to the auction platform that provides clearing, margining, netting, management of collateral, settlement and delivery, and any other services, carried out by a central counterparty that is accessed either directly or indirectly through members of the central counterparty who act as intermediaries between their clients and the central counterparty;
collateral
means collateral security as defined in Article 2, point (m), of Directive 98/26/EC of the European Parliament and of the Council, including any allowances accepted as security by the clearing system or settlement system;
common auction platform
means the auction platform appointed following a joint procurement procedure between the Commission and the Member States, as contracting authorities, pursuant to Article 26(1)
control
means control as referred to in Article 3(2) and (3) of Council Regulation No 139/2004;
credit institution
means credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 of the European Parliament and of the Council;
criminal activity
means criminal activity as defined in Article 3, point (4), of Directive (EU) 2015/849;
customer due diligence measures
means the customer due diligence measures as referred to in Article 13 of Directive (EU) 2015/849 and the enhanced customer due diligence measures as set out in Articles 18, 18a and 20 of that Directive;
duly certified copy
means an authentic copy of an original document that is certified as being a true copy of the original by a qualified lawyer, accountant, notary public or similar professional who is recognised under the national law of the Member State concerned to attest officially as to whether a copy is in fact a true copy of its original;
exit strategy
means one or more documents that are determined in accordance with the contracts appointing the auction platform concerned and that set out detailed measures planned to ensure the following:
financial instrument
means financial instrument as defined in Article 4(1), point (15), of Directive 2014/65/EU;
inside information
means inside information as defined in Article 7 of Regulation (EU) No 596/2014;
insider dealing
means insider dealing as defined in Article 8 of Regulation (EU) No 596/2014;
investment firm
means investment firm as defined in Article 4(1), point (1), of Directive 2014/65/EU;
margining
means the process by which collateral is pledged by an auctioneer or a bidder, or one or more intermediaries acting on their behalf, to cover a given financial position, encompassing the entire process of measuring, calculating and administering the collateral put up to cover such financial positions, and which is intended to ensure that all payment commitments of a bidder and all delivery commitments of an auctioneer or one or more intermediaries acting on their behalf can be met within a very short period of time;
market abuse
means market abuse as defined in Article 1 of Regulation (EU) No 596/2014;
market manipulation
means market manipulation as defined in Article 12 of Regulation (EU) No 596/2014;
market operator
means market operator as defined in Article 4(1), point (18), of Directive 2014/65/EU;
Member State of establishment
means any of the following:
money laundering
means money laundering as defined in Article 1(3), (4) and (6) of Directive (EU) 2015/849 of the European Parliament and of the Council;
nominated bank account
means a bank account designated by an auctioneer, a bidder or bidder’s successor in title for the receipt of payments due under this Regulation;
nominated Union Registry account
means an account in the Union Registry established by Delegated Regulation (EU) 2019/1122;
opt-out auction platform
means the auction platform appointed by a Member State not participating in the joint action as provided in Article 26(1), as its own auction platform, pursuant to Article 29(1)
parent undertaking
means parent undertaking as defined in Article 2, point (9), of Directive 2013/34/EU of the European Parliament and of the Council;
politically exposed person
means politically exposed person as defined in Article 3, point (9), of Directive (EU) 2015/849;
regulated market
means regulated market as defined in Article 4(1), point (21), of Directive 2014/65/EU;
secondary market
means the market in which persons buy or sell allowances either before or after they are allocated either free of charge or through auctioning;
settlement
means payment by a successful bidder or its successor in title, or by a central counterparty or a settlement agent of the sum due for allowances to be delivered to that bidder or its successor in title or to a central counterparty or a settlement agent, and delivery of the allowances to the successful bidder or its successor in title, or to the central counterparty or the settlement agent;
settlement agent
means an entity acting as an agent providing accounts to the auction platform, through which accounts instructions for the transfer of the auctioned allowances given by the auctioneer or an intermediary representing it and for the payment of the auction clearing price by a successful bidder, its successor in title or an intermediary representing them are safely executed either simultaneously or nearly simultaneously in a guaranteed manner;
settlement system
means any infrastructure, whether or not connected to the auction platform, that provides settlement services, which include clearing, netting, management of collateral, or any other services and which ultimately enable the payment of the sum due by a successful bidder or its successor in title to an auctioneer, and the delivery of allowances on behalf of an auctioneer to a successful bidder or its successor in title, where those services are carried out through either of the following:
subsidiary undertaking
means subsidiary undertaking as defined in Article 2, point (10), of Directive 2013/34/EU;
terrorist financing
means terrorist financing as defined in Article 1(5) and (6) of Directive (EU) 2015/849;
trading day
means any day during which an auction platform and the clearing system or settlement system connected to it are open for trading;
two-day spot contracts
means contracts by which allowances are auctioned for delivery at an agreed date no later than the second trading day following the day of the auction;
unlawful disclosure of inside information
means unlawful disclosure of inside information as defined in Article 10 of Regulation (EU) No 596/2014;