The role of financial operators in the ETS market and the incidence of their activities in determining the allowances price

The objective of this study is to provide the ITRE Committee/the European Parliament (EP) with objective and up-to-date information on the role of financial operators in the ETS market and their role in determining allowance price movements (level and volatility). Taking ESMA’s (2022) findings and recommendations as a point of departure, the study determines whether the changed geopolitical context and the actions the EU has taken as a reaction to this change alters the findings presented by ESMA, as well as the political recommendations.