Auctioned products
Article 4
1. Allowances shall be offered for sale on an auction platform by means of standardised electronic contracts (‘the auctioned product’). 2. Each Member State shall auction allowances in the form of two-day spot contracts.
Commission Delegated Regulation (EU) 2023/2830 CHAPTER II — THE DESIGN OF AUCTIONS
Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Auction format
Article 5
Auctions shall be carried out through an auction format whereby bidders shall submit their bids during a given bidding window without seeing bids submitted by other bidders. Each successful bidder shall pay the auction clearing price referred to in Article 7 for each allowance regardless of the price bid.
Submission and withdrawal of bids
Article 6
1. The minimum volume bid for shall be one lot of 500 allowances. 2. Each bid shall state the following: (a) the identity of the bidder and whether the bidder is bidding on its own account or on behalf of a client; (b) where the bidder is bidding on behalf of a client, the identity of the client; (c) the volume bid as a number of allowances in integral multiples of lots referred to in paragraph 1; (d) the price bid in euro for each allowance, rounded to two decimal points. 3. Each bid may only be submitted, modified or withdrawn by a given deadline before the close of the bidding window. The auction platform concerned shall set and publish this deadline on its website at least five trading days prior to the opening of the bidding window. Only a natural person established in the Union, appointed pursuant to Article 19(2), point (d), and authorised to bind a bidder for all purposes relating to the auctions, including the submission of a bid (the ‘bidder’s representative’), is entitled to submit, modify or withdraw a bid on behalf of a bidder. Once submitted, each bid shall be binding, unless it is withdrawn or modified pursuant to this paragraph or withdrawn pursuant to paragraph 4. 4. Where the relevant auction platform considers that a genuine mistake has been made in the submission of a bid, it may, upon request of the bidder’s representative, treat the mistakenly submitted bid as withdrawn after the close of the bidding window, but before the auction clearing price has been determined. 5. The reception, transmission and submission of a bid by an investment firm or credit institution on any auction platform shall be deemed to constitute an investment service and activity within the meaning of Article 4(1), point (2), of Directive 2014/65/EU.
Auction clearing price and resolution of tied bids
Article 7
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. 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. 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.
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