ANNOUNCEMENT
27 August 2007
The Lithuanian Environmental Investment Fund announces the auction of EU Allowances of the
trading period 2005 – 2007 of the EU Greenhouse Gas Emissions Trading Scheme (EU ETS).
Quantity of EUAs LEIF intends to
auction
Potential participants
Collateral
Bidding phase
Evaluation period
Acceptance period
Confirmation of the successful
bids
Type of auction
Type of pricing
The minimum bid increment
The minimum bid quantity
The lot size
The minimum bid price
Clearing price setting rules
Price acceptance rules
Bids acceptance rules at the
clearing price
552,000 EU Allowances of the trading period 2005 – 2007 of the EU Greenhouse Gas
Emissions Trading Scheme (EU ETS)
All entities or individuals holding an account at an emissions trading registry in any of
the EU Member States may participate in the auction after accessing any of the Climex
Alliance exchanges. Such accession is free of any sign up or annual fees. Further
participants may join the auction and submit bids through brokers who are members of a
Climex Alliance exchange.
The bidders need to deposit 100% collateral at the clearing house of the Climex Alliance
two working days before the date of the auction at the latest.
10 September 2007, 10:00 – 11:00 CET
The submitted bids may not be withdrawn nor changed after the termination of the
bidding phase
10 September 2007, 11:00 – 14:00 CET
10 September 2007, 11:00 – 14:00 CET
10 September 2007, 14:00 CET
Blind (order book will not be visible to bidders)
Uniform (the Auctioneer offers a single price to all successful bidders, which is the
“clearing price”)
0.01 Euro per 1 EUA
1,000 EUAs
1,000 EUAs
Participants may submit bids for any quantity of EUAs, as a multiple of lot size, up to the
limit of the total number of allowances offered for auction.
85% of the market price rounded down to the closest Euro cent value. The market price
is calculated as volume weighted average of the prices on the three most liquid spot
exchanges of the EU CO2 markets during three days before the auction.
Bids below the minimum price are invalid.
Clearing price
1. For setting the clearing price the bids will be listed in descending order by price (in
case there are bids at the same price, time order shall decide on ranking in a way that
earlier bid shall be ranked higher).
2. The bids shall be started to be marked from the top of the ranked list as it is specified
in the above point. The volume of those marked bids shall be added up until the level,
where the sum of the total volume reaches the total number of allowances to be sold.
3. The last marked bid's price shall be deemed as the clearing price.
4. All marked bids will be changed so that the bid price will be made equal to the
clearing price.
In case the total volume of all the bids is less than the total number of allowances to be
sold, the lowest valid bid price shall be considered the clearing price.
The Auctioneer will accept all bids with a bid price higher or equal to the clearing price.
Bids at the clearing price will be accepted for the following quantity
1. Full quantity accepted by the Auctioneer minus the bids already accepted
(hereinafter: “quantity remaining at the clearing price”), also at the clearing price.
2. If there is more than one bid at the clearing price, then the quantity remaining at the
clearing price will be allocated in the order the bids were received (time-stamping).
3. The first bid submitted at the clearing price will be accepted first, and then the rest in
the received order, until the full quantity remaining at the clearing price is sold.
4. The last bid in the auction is accepted only to the extent of the remaining amount of
emission allowances.
Vertis Environmental Finance Zrt. ▪ 1123 Budapest, Alkotás u. 39/c, Hungary ▪ phone +36 1 488 8410 ▪ fax +36 1 488 8411 ▪ www.vertisfinance.com
Further details about the auction and news are available on the www.vertisfinance. website.
Lithuanian Environmental Investment Fund reserves the right to change the details of the auction; in
such case amendment of the details will be published not later than 5 days before the auction.
For more information, please contact
Gergely Szabó
Vertis Environmental Finance Zrt.
Telephone +36 1 489 1909
Fax +36 1 489 1901
E-mail: [email protected]
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