Rules and Regulations

The auctioning of allowances is governed by the EU Auctioning Regulation. This covers the timing administration and other aspects of auctioning. In addition, for all EEX's emissions auctions, the respective rules and procedures of EEX and ECC apply.

As an important aspect for accessing the auctions, the EU Auctioning Regulation defines the categories of participants who are eligible to apply to bid in the auctions, and requires certain admission criteria to be fulfilled (cf. Article 18 and 19).

Eligibility to bid

Participants must be eligible to bid according to EU rules¹. Eligible under these rules are:

• Compliance buyers, bidding on own account, including any parent companies, subsidiaries and affiliates.
• Investment firms and credit institutions, bidding on own account or on behalf of clients. These firms must be authorised under MiFID (Directive 2014/65/EU) or under the Credit Institutions Directive (Directive 2013/36/EU) respectively.² 
• Business groupings of compliance buyers, bidding on own account and acting as an agent on behalf of their members.
• Other intermediaries specifically authorized by the home Member State, bidding on own account or on behalf of clients.

_{¹Reference: Article 18(1) and (2) Auctioning Regulation.
²These firms must be authorised under MiFID (Market in Financial Instruments Directive 2014/65/EU).}

Admission Requirements

Potential bidders must also fulfill admission requirements as set out in the EU Auctioning Regulation³ as well as the exchange rules of EEX. These are:

• Admission requirements according to EU rules⁴:
  • Establishment in the EU (except for compliance buyers)
  • Nominated registry account
  • Nominated bank account
  • Appointment of at least one bidder's representative
  • Technical arrangements to give effect to a maximum bid-size (if necessary)
  • Compliance with respective exchange requirements
     
• EEX requirements for admission:
  • Liable equity of at least EUR 50,000*
  • Evidence of personal reliability and professional qualification
  • Admission of at least one trader, incl. EEX trader examination **
  • Technical arrangements for trading** and settlement
  •  Recognition as a trading participant by ECC (clearing house)
  • Conclusion of an agreement with a clearing member of ECC

_{^*Not required for "auction-only" membership at EEX
^** Not required for "auction-only" membership at EEX, if bidding via EEX Market Operations
³Reference: Article 19 Auctioning Regulation
⁴Reference: Article 19(2) Auctioning Regulation}

Compliance Measures

For an overview of measures against money-laundering, terrorist financing, criminal activity or market abuse, please consult the ECC website.

EU ETS Regulation

A full documentation of EU ETS Regulation on auctioning is available on the website of the European Commission.