The National Commission did not approve the draft law on trading greenhouse gas emission quotas
The National Commission on Securities and Stock Market announced that it does not support the Ministry of Economy's draft law on trading greenhouse gas emission quotas.
They emphasize that the proposed version does not meet European Union standards.
“The main discrepancy is that in the EU quotas can be freely bought and sold from day one. In contrast, the document proposes to launch full-fledged trading only in the second and third phases of the system's operation. According to the Commission, this does not correspond to the approaches embedded within the largest emissions trading system EU ETS and the Markets in Financial Instruments Directive MiFID II,” the statement reads.
The Commission also insists that the quota market operator must be licensed and operate under the regulator's supervision — just like regular capital markets. Otherwise, the Commission simply will not be able to control the trades.
“Finally, there is a warning about the mild fines: from 17,000 to 51,000 hryvnias for manipulations and from 34,000 to 85,000 for insider trading.
For comparison, on regular capital markets, such violations are fined up to 81 million hryvnias for individuals and up to 243 million for companies. In the EU, the thresholds are even higher. The Commission is confident that such low sanctions will simply not stop offenders.
Due to all these shortcomings, the document was sent back for revision. If the Ministry takes all the warnings into account, the Commission is ready to support the draft law,” the Commission added.
Subscribe to our Telegram channel t.me/sudua and to Google News SUD.UA, as well as to our VIBER and WhatsApp, Facebook page Facebook and on Instagram to stay updated on the most important events.
