The European Commission (EC) is set to recommend to the European Union (EU) inclusion of carbon market trading in the new financial markets law, The Wall Street Journal reports. The commission believes that including the carbon market rules into the Markets in Financial Instruments Directive, or Mifid, will create a stable legal framework for traders and bring rules for spot trading in the carbon market in line with the rules for derivatives. The move to beef up market security measures and transparency in the system follows theft of permits worth around €30 million that led to the suspension of spot trading in January. However, there are apprehensions among traders that the move may remove certain exemptions they consider important and also add costs as well as bureaucratic hurdles.
Click here for the story from The Wall Street Journal.