Green Exchange Holdings LLC

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The Green Exchange
Image:Greenexchangelogo.gif
Founded 2008
Headquarters New York
Key People Thomas Lewis, CEO; Nancy King, Chairperson
Products Environmental futures, options and swap contracts
Web site www.greenfutures.com

The Green Exchange is a venture whose formation was first announced in mid-December 2007 by the New York Mercantile Exchange (NYMEX), along with Evolution Markets Inc., Morgan Stanley Capital Group Inc., Credit Suisse, JPMorgan, Merrill Lynch, Tudor Investment Corp., ICAP, RNK Capital, Vitol SA, Goldman Sachs, Spectron, TFS Energy and Constellation Energy.

With the CME Group acquisition of NYMEX in August 2008, CME assumed NYMEX's equity stake in the exchange and plans to continue with the original consortium structure.[1] [2][3]

CME Group Inc's Green Exchange LLC won regulatory approval as a designated contract market on July 23, 2010, adding a fourth regulated exchange to CME's stable. The approval allows the CME to consolidate all its climate-related contracts on a single market.[4]

The consortium is competing with the Chicago Climate Exchange, which offers many of the same products.

Contents

Products and Services

Initially, the Green Exchange offered trading in global carbon-based contracts, such as European Union Allowances (EUAs) under the European Union Emission Trading Scheme, carbon credits (CERs) under the United Nations Clean Development Mechanism, and verified emission reductions (VERs/VCUs) for greenhouse gases used in accordance with voluntary carbon standards. The Green Exchange will also offer contracts for U.S. SO2 and NOx emissions allowance trading programs, as well as contracts for national Green-e certified voluntary Renewable Energy Certificates (RECs).

The futures contracts are available for trading on the CME Globex electronic trading platform while the options contracts are traded on the NYMEX trading floor. All contracts are available for clearing through NYMEX ClearPort and the CME Clearinghouse.[5]

Key People

News

  • The NYMEX launched its Green Exchange trading platform on March 17, 2008, which was also St. Patrick's Day. The exchange began as a venture among market players including NYMEX, Evolution Markets, Morgan Stanley and Merrill Lynch.[6]
  • Koch Supply & Trading LP, one of the largest energy trading firms in the U.S., and Alpha Energy Partners LLC, a private diversified energy firm, completed the first trade of Sulfur Dioxide (SO2) allowance futures on The Green Exchange on March 17, 2008. In addition, Koch Supply & Trading and Merrill Lynch completed the first trade of Nitrogen Oxide allowance futures. Both trades were brokered by Evolution Markets Inc. Under the terms of the transactions, the Alpha Energy and Koch Supply & Trading traded five SO2 futures contracts for delivery in 2008. Five SO2 futures contracts on The Green Exchange were equal to 500 SO2 allowances or 500 tons of SO2. In addition, Merrill Lynch and Koch Supply & Trading traded 10 seasonal NOx futures contracts for delivery in June 2008]].[7]
  • On March 25, 2008, The Green Exchange reported that the exchange saw robust trading in its contracts in the exchange's first week. Trade volume in The Green Exchange's carbon contracts totaled 1.59 million tonnes. According to the exchange, this meant the exchange had the most successful launch of exchange-traded carbon contracts.[8]
  • On April 8, 2008, The Green Exchange™ announced that ICAP Energy LLC had agreed to work toward building The Green Exchange venture as a founding member.[9]
  • In September 2009, Green Exchange waived trading fees for three months for all emissions futures and options, including European Union carbon permits, in a bid to gain market share from the Chicago Climate Exchange.
  • On April 26, 2010 The Green Exchange filed for independent exchange status with the Commodity Futures Trading Commission (CFTC). [10]

References

  1. ↑ Partners. NYMEX. Retrieved on December 12, 2008.
  2. ↑ Home page. Green Exchange. Retrieved on January 15, 2008.
  3. ↑ "NYMEX and Other Major Market Participants to Form the Green Exchange, the World's Most Comprehensive Environmental Marketplace”. NYMEX. Retrieved on December 30, 2007.
  4. ↑ CME Group's Green Exchange gets CFTC approval. Reuters. Retrieved on July 27, 2010.
  5. ↑ Partners. NYMEX. Retrieved on December 12, 2008.
  6. ↑ The Green Exchange: How Not to Miss a Trillion-Dollar Opportunity. Energy and Capital. Retrieved on March 21, 2008.
  7. ↑ Press Release. . Retrieved on March 24, 2008.
  8. ↑ Press Release. NYMEX. Retrieved on March 25, 2008.
  9. ↑ The Green Exchange Announces ICAP as Founding Member. NYMEX. Retrieved on April 8, 2008.
  10. ↑ CME's Green Exchange Files For Independent Exchange Status. Nasdaq. Retrieved on April 26, 2010.
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