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Abstract:
The EU Transaction Log (EUTL) is the essential part of the Registry: its keeps track of trades and ownership of allowances and thus plays a key role for market monitoring, integrity and trust. In particular, it is an important data source for researchers whose works contributes to the understanding of market functioning and the reduction of informational frictions. In the past researchers used EUTL data to analyse transaction costs, offsets, the role of banks, additional profits, market participation and related factors, auctions, stock markets, and the effects of allocation. However, the quality of the data as currently provided has confronted researchers with considerable challenges that call for regulatory changes. Prevailing data challenges have made analyses relatively time consuming, imposed limitations on accuracy and scope, and, simply, reduced researchers interest to study the ETS. Similar challenges have also been reported by the European Securities and Markets Authorities (ESMA) in its 2022 report on emission allowances and associated derivatives. In our feedback, we - members of the scientific research community - echo ESMAs recommendations and highlight other ways to improve the EUTL based on our experience with the use and analysis of EUTL data. Detailed feedback and recommendations are provided in the attached document. We appreciate that the scope and timing of this specific phase of the regulatory process may not allow full consideration of all the elements provided below, but we hope that they will be taken up in future revisions and reforms of the EUTL and of the EU ETS more generally.
