affiliate undertaking — an undertaking linked to a parent or subsidiary undertaking by a relationship within the meaning of Article 12(1) of Directive 83/349/EEC 14.

auction process — the process encompassing the setting of the auction calendar, the procedures for admission to bid, the procedures for submission of bids, the conduct of the auction, the calculation and announcement of the auction results, the arrangements for payment of the price due, delivery of the allowances and management of the collateral needed to cover any transaction risks, as well as the surveillance and monitoring of the proper conduct of the auctions by an auction platform 16.

auctioneer — any public or private entity appointed by a Member State, to auction allowances on its behalf 20.

beneficial owner — the same as in Article 3(6) of Directive 2005/60/EC 24.

bid — an offer in an auction to acquire a given volume of allowances at a specified price 5.

bidding window — the time period during which bids may be submitted 6.

central counterparty — an entity which interposes either directly between an auctioneer and a bidder or its successor in title, or between intermediaries representing them, that acts as the exclusive counterparty to each of them guaranteeing the payment of the auction proceeds to the auctioneer or an intermediary representing it or the delivery of the auctioned allowances to the bidder or an intermediary representing it, subject to Article 48 35.

clearing — all processes preceding the opening of the bidding window, during the bidding window and following the closing of the bidding window until settlement, involving the management of any risks arising during that interval, including margining, netting, or novation, or any other services, carried out possibly by a clearing or settlement system 32.

clearing system — one or more infrastructure connected to the auction platform that can provide clearing, margining, netting, management of collateral, settlement and delivery, and any other services, carried out by a central counterparty, accessed either directly or indirectly through members of the central counterparty who act as intermediaries between their clients and the central counterparty 31.

collateral — the forms of collateral security referred to in Article 2(m) of Directive 98/26/EC of the European Parliament and of the Council OJ L 166, 11.6.1998, p. 45. , including any allowances accepted as security by the clearing system or settlement system 38.

control — the same as in Article 3(2) and (3) of Council Regulation No 139/2004 OJ L 24, 29.1.2004, p. 1. as applied in the Commission’s Consolidated Jurisdictional Notice OJ C 95, 16.4.2008, p. 1. . Recital (22) of that Regulation and paragraphs 52 and 53 of that Notice shall apply for determining the notion of control for state-owned undertakings 15.

credit institution — the same as in Article 4(1) of Directive 2006/48/EC of the European Parliament and of the Council OJ L 177, 30.6.2006, p. 1. 9.

criminal activity — the same as in Article 3(4) of Directive 2005/60/EC 19.

customer due diligence measure — the same as in Article 8(1) of Directive 2005/60/EC having regard to Article 8(2) of that Directive 23.

duly certified copy — an authentic copy of an original document that is certified as being a true copy of the original by a qualified lawyer, accountant, notary public or similar professional who is recognised under the national law of the Member State concerned to attest officially as to whether a copy is in fact a true copy of its original 25.

establishment — any of the following: place of residence or permanent address within the Union for the purposes of the third subparagraph of Article 6(3); the same as in point 20(a) of Article 4(1) of Directive 2004/39/EC taking into account the requirements of Article 5(4) of that Directive for the purposes of Article 18(2) of this Regulation; the same as in point 20(a) of Article 4(1) of Directive 2004/39/EC taking into account the requirements of Article 5(4) of that Directive for the purposes of Article 18(3) of this Regulation, in the case of persons referred to in point (b) of Article 18(1) of this Regulation; the same as in point (7) of Article 4 of Directive 2006/48/EC for the purposes of Article 18(3) of this Regulation, in the case of persons referred to in point (c) of Article 18(1) of this Regulation; the same as in point 20(a) of Article 4(1) of Directive 2004/39/EC for the purposes of Article 19(2) of this Regulation in the case of business grouping referred to in point (d) of Article 18(1) of this Regulation; the same as in point 20(b) of Article 4(1) of Directive 2004/39/EC for the purposes of Article 35(4), (5) and (6) and Article 42(1) of this Regulation 43.

financial instrument — the same as in point (17) of Article 4(1) of Directive 2004/39/EC unless otherwise stated in this Regulation 10.

five-day futures — allowances auctioned as financial instruments, pursuant to Article 38(3) of Regulation (EC) No 1287/2006, for delivery at an agreed date no later than the fifth trading day from the day of the auction 4.

forwards — allowances auctioned as financial instruments, pursuant to Article 38(3) of Regulation (EC) No 1287/2006, for delivery at an agreed forward date at the auction clearing price determined pursuant to Article 7(2) of this Regulation and upon which variation margin calls to reflect price movements may be secured, either through non-cash collateral or by means of an agreed government guarantee, at the option of the central counterparty 2.

futures — allowances auctioned as financial instruments, pursuant to Article 38(3) of Commission Regulation (EC) No 1287/2006 OJ L 241, 2.9.2006, p. 1. , for delivery at an agreed future date at the auction clearing price determined pursuant to Article 7(2) of this Regulation and upon which variation margin calls to reflect price movements are payable in cash 1.

inside information — information of a precise nature which has not been made public, relating, directly or indirectly, to one or more of the auctioned products, and which, if it were public, would be likely to have a significant effect on the prices at which bids would be made. For persons charged with the execution of bids, inside information also means information conveyed by a client and related to the client’s pending bids, which is of a precise nature, which related directly or indirectly to one or more auctioned products and which, if it were made public, would be likely to have a significant effect on the prices at which bids would be made (a)

inside information — the same as in Article 1(1) of Directive 2003/6/EC in relation to a financial instrument within the meaning of Article 1(3) of Directive 2003/6/EC referred to in Article 9 of that Directive unless otherwise stated in this Regulation 29.

insider dealing — the use of inside information as prohibited pursuant to Articles 2, 3 and 4 of Directive 2003/6/EC in relation to a financial instrument within the meaning of Article 1(3) of Directive 2003/6/EC referred to in Article 9 of that Directive unless otherwise stated in this Regulation 28.

investment firm — the same as in point (1) of Article 4(1) of Directive 2004/39/EC 8.

margining — the process by which collateral is to be pledged by an auctioneer or a bidder, or one or more intermediaries acting on their behalf, to cover a given financial position, encompassing the entire process of measuring, calculating and administering the collateral put up to cover such financial positions, intended to ensure that all payment commitments of a bidder and all delivery commitments of an auctioneer or one or more intermediaries acting on their behalf can be met within a very short period of time 33.

market abuse — either insider dealing as defined in point (28) of this Article or prohibited in Article 38 or market manipulation as defined in point (30) of this Article or in Article 37(b), or both 27.

market manipulation — bids, or transactions or orders on the secondary market: which give, or are likely to give, false or misleading signals as to the demand for or price of the auctioned products, or which secure, by a person, or persons acting in collaboration, an auction clearing price for the auctioned products at an abnormal or artificial level, unless the person who made the bid or, on the secondary market, the transaction or the order, establishes that its reasons for so doing are legitimate; bids which employ fictitious devices or any other form of deception or contrivance; dissemination of information through the media, including the Internet, or by any other means, which gives, or is likely to give, false or misleading signals as to the auctioned products, including the dissemination of rumours and false or misleading news, where the person who made the dissemination knew, or ought to have known, that the information was false or misleading. In respect of journalists when they act in their professional capacity such dissemination of information is to be assessed, taking into account the rules governing their profession, unless those persons derive, directly or indirectly, an advantage or… (b)

market manipulation — the same as in Article 1(2) of Directive 2003/6/EC in relation to a financial instrument within the meaning of Article 1(3) of Directive 2003/6/EC referred to in Article 9 of that Directive unless otherwise stated in this Regulation 30.

market operator — the same as in point (13) of Article 4(1) of Directive 2004/39/EC 42.

money laundering — the same as in Article 1(2) of Directive 2005/60/EC having regard to Article 1(3) and (5) of that Directive 17.

nominated bank account — a bank account designated by an auctioneer, a bidder or its successor in title for the receipt of payments due under this Regulation 22.

nominated holding account — one or more type of holding account provided for in the applicable Commission regulation adopted pursuant to Article 19(3) of Directive 2003/87/EC for the purposes of participating in or conducting the auction process including the holding of allowances in escrow, pending their delivery under this Regulation 21.

parent undertaking — the same as in Articles 1 and 2 of Council Directive 83/349/EEC OJ L 193, 18.7.1983, p. 1. 12.

politically exposed persons — the same as in Article 3(8) of Directive 2005/60/EC 26.

regulated market — the same as in point (14) of Article 4(1) of Directive 2004/39/EC 39.

secondary market — the market in which persons buy or sell allowances either before or after they are allocated either free of charge or through auctioning 11.

settlement — payment by a successful bidder, or its successor in title, or a central counterparty, or a settlement agent of the sum due for allowances to be delivered to that bidder or its successor in title, or a central counterparty, or a settlement agent, and delivery of the allowances to the successful bidder or its successor in title, or a central counterparty or a settlement agent 34.

settlement agent — an entity acting as an agent providing accounts to the auction platform, through which accounts instructions for the transfer of the auctioned allowances given by the auctioneer or an intermediary representing it and the payment of the auction clearing price by a successful bidder, its successor in title, or an intermediary representing them are safely executed either simultaneously or nearly simultaneously in a guaranteed manner 37.

settlement system — any infrastructure whether or not connected to the auction platform that can provide settlement services, which may include clearing, netting, management of collateral, or any other services, which ultimately enable the delivery of allowances on behalf of an auctioneer to a successful bidder or its successor in title, and the payment of the sum due by a successful bidder or its successor in title to an auctioneer, carried out through either of the following: the banking system and the Union registry; one or more settlement agents acting on behalf of an auctioneer and a bidder or its successor in title, accessing the settlement agent either directly or indirectly through members of the settlement agent who act as intermediaries between their clients and the settlement agent 36.

small emitters — operators or aircraft operators that emitted 25000 tonnes of carbon dioxide equivalent emissions or less on average in the three calendar years preceding the year in which they participate in an auction, as determined by their verified emissions 41.

SMEs — operators or aircraft operators that are small and medium-sized enterprises within the meaning of Commission Recommendation 2003/361/EC OJ L 124, 20.5.2003, p. 36. 40.

subsidiary undertaking — the same as in Articles 1 and 2 of Directive 83/349/EEC 13.

terrorist financing — the same as in Article 1(4) of Directive 2005/60/EC having regard to Article 1(5) of that Directive 18.

trading day — any day during which an auction platform and the clearing system or settlement system connected to it are open for trading 7.

two-day spot — allowances auctioned for delivery at an agreed date no later than the second trading day from the day of the auction, pursuant to Article 38(2)(a) of Regulation (EC) No 1287/2006 3.