Mar 25 2008
The Green Exchange(TM), which initiated trading last week in a range of environmental futures and options contracts, reports strong first-week trading in the initial slate of products, establishing it as a leading global marketplace for environmental trading. Trade volume in The Green Exchange's carbon contracts alone totaled 1.59 million tonnes, making it the most successful launch of exchange-traded carbon contracts.
At the close of the holiday-shortened week of trading (Monday, March 17 to Thursday, March 20) The Green Exchange reports the following volume:
- European Union carbon allowances futures (EUAs) (all delivery dates): 280 contracts
- EUA options (all delivery dates): 1,000 contracts
- Certified Emissions Reductions (CERs) (all delivery dates): 310 contracts
- SO2 allowances (all delivery dates): 236 contracts
- NOx allowances (all delivery dates; annual and season contracts): 10 contracts
(Note: Each EUA contract is equal to 1,000 EUAs or 1,000 tonnes of CO2 equivalent. Each CER contract is equal to 1,000 EUAs or 1,000 tonnes of CO2 equivalent. Each SO2 contract is equal to 100 SO2 allowances. Each NOx contract is equal to 10 NOx allowances.)
The Green Exchange offers a comprehensive range of environmental contracts for markets focused on solutions to climate change, air pollution, and other environmental challenges. The first slate of environmental futures and options contracts were introduced on the New York Mercantile Exchange, Inc., the world's largest physical commodities exchange and a subsidiary of NYMEX Holdings, Inc. (NYSE: NMX), at 6:00 PM ET, Sunday, March 16 for trade date Monday, March 17. The first transaction, which was for 25 CER futures contracts with December 2008 delivery, was logged shortly after market open.
NYMEX Chairman Richard Schaeffer said, "The strong launch of trading on The Green Exchange marks a significant milestone in global commodity trading. The Green Exchange provides a broad slate of environmental products linked to NYMEX's global energy complex, which provides an unprecedented ability to manage risk and take positions in energy and environmental markets."
In December 2007, The Green Exchange initiative was introduced by NYMEX Holdings, Inc., with Evolution Markets, Morgan Stanley, Credit Suisse, JPMorgan, Merrill Lynch, Tudor Investment and Constellation Energy. On March 12, The Green Exchange announced the addition of Vitol SA and RNK Capital to the initial group of partners. Each company has agreed to work toward building The Green Exchange venture as founding members.
Andrew Ertel, President & CEO of Evolution Markets Inc., said, "The Green Exchange opened strong during an initial week of trading under difficult circumstances on Wall Street. Despite uncertainty in the global financial sector and a holiday-shortened week, we were able to have the best opening week ever for a carbon exchange. We only expect the momentum to continue to build on the strength of its founding members. As we look to enhance market liquidity in global carbon markets and continue to focus on the highest environmental standards, The Green Exchange is well positioned to be the global hub for environmental commodity markets."