Article 12 Insertion of new article 25A (trading CRTS allowances with VRTS participants)

After article 25 insert—

“Trading CRTS allowances with VRTS participants

25A

(1)

During a trading window, a CRTS participant may trade any unused CRTS allowances with a VRTS participant if—

(a)

the CRTS participant’s number of units of activity in the CRTS in a scheme year does not exceed the sum of—

(i)

the number of CRTS allowances which were allocated to the CRTS participant in accordance with article 13 for that year;

(ii)

the number of any CRTS allowances which were banked by the CRTS participant in accordance with article 14 and were available for it to use at the beginning of the trading window; and

(iii)

the number of any CRTS credits which were acquired by the CRTS participant in accordance with article 23 (conversion of unused CCTS allowances) and are available for it to use;

(b)

the CRTS participant has more CRTS allowances than it requires in order to comply with article 27 (accounting for activity in the CRTS) for that scheme year (referred to in this article as “unused CRTS allowances”); and

(c)

the CRTS participant did not acquire the unused CRTS allowances in accordance with article 15 (borrowing CRTS allowances).

(2)

Where a CRTS participant trades a CRTS allowance under this article, the CRTS allowance is automatically converted to four tenths of a VRTS credit on disposal.

(3)

The CRTS participant may trade parts of CRTS allowances (in which case the conversion rate in paragraph (2) applies on a proportional basis) but may not trade a part smaller than one tenth of a CRTS allowance.

(4)

Each party to a trade under this article must, before the end of the trading window, notify the administrator of the trade, and each notification must include—

(a)

the name and account number in the registry of the transferor;

(b)

the name and account number in the registry of the transferee;

(c)

a statement of the fact that the trade was carried out under this article;

(d)

the number of CRTS allowances traded; and

(e)

the price paid for those CRTS allowances.

(5)

Each party to a trade under this article must inform the other party to the trade of their account number in the registry.

(6)

Where—

(a)

the transferor is a pool CRTS participant, article 25(5) applies to a trade under this article as it applies to a trade under that article;

(b)

the transferee is a pool VRTS participant, article 57(5) applies to a trade under this article as it applies to a trade under that article.

(7)

Where a trade is notified in accordance with paragraph (4), the administrator must update the registry and notify the parties to the trade accordingly.

(8)

Unless the administrator is satisfied that notification of a trade has been given in accordance with paragraph (4), the trade is treated as not having taken place.”.