Market Oversight - China Context.pdf

Market Oversight Part 1 China Context Mr Tan Jin Supporting the Design and Implementation of Emissions Trading Systems in China - 中欧碳交易能力建设项目 Beijing , 19 th September 2014 This project/programme is funded by the European Union Project implemented by ICF International together with Sinocarbon, SQ Consult and EcofysCurrent status Well-functioning China National ETS Road maps Cap setting Allocation MRVA Registry Market oversight Capacities built over time Supporting the Design and Implementation of Emissions Trading Systems in China - 中欧碳交易能力建设项目Market Oversight -- China Context  Only spot transaction, no future.  7 pilots are separated.  All transactions are completed in exchanges.  Exchanges directly supervise market activities, penalize breach market participants and report to local DRCs.  Only Shanghai Exchange published specific market oversight rules. Others are only in the ETS management measures. 3Oversight Rules -- China Context Oversighted Activities Illegal Transactions Abnormal Transactions Market manipulation Fraud activities Penalty Freezing exchange account and bank account Suspending membership Confiscating illegal revenue Fine less than 150,000 Yuan 4Oversight Status and Future Plan After 1 year and a quarter, no breach transactions were discovered. In the future, a market activity analysis system will be developed for market oversight for the national carbon market. 5