The Green Exchange
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| The Green Exchange | |
| Founded | 2008 |
|---|---|
| Headquarters | New York |
| Products | Environmental futures, options and swap contracts |
| Web site | http://www.greenfutures.com/ |
In mid-December 2007, NYMEX announced the formation of The Green Exchange venture[1][2], with Evolution Markets Inc., Morgan Stanley Capital Group Inc., Credit Suisse, JPMorgan, Merrill Lynch, Tudor Investment Corp., ICAP, and Constellation Energy. The new exchange, which launched on March 17, 2008, offers a number of environmental futures, options and swap contracts for markets focused on solutions to climate change, renewable energy, and other environmental challenges. NYMEX and its partners will seek to take business from the Chicago Climate Exchange.
The initial Green Exchange contracts are European Union Allowances (EUA) futures and options; Certified Emission Reduction (CER) futures; seasonal nitrogen oxide emission allowance contracts; Annual Nitrogen Oxide Allowance futures; and Sulfur Dioxide Emission Allowance options. The futures contracts are available for trading on the CME Globex electronic trading platform; the options contracts are available for trading on the NYMEX trading floor, and all contracts are available for clearing on NYMEX ClearPort.[3]
The Green Exchange products are traded on the CME's Globex trading platform and will be cleared by NYMEX. Cross margining between NYMEX and the new exchange is instituted.
Initially, the Green Exchange products will be listed on NYMEX, then moved to the Green Exchange once it gains regulatory approval.[4] The venture is expected will launch as a U.S. Commodity Futures Trading Commission (CFTC)-regulated exchange in the first quarter of 2009, pending regulatory approval.[5]
NYMEX Chairman Richard Schaeffer will serve as chief executive officer of the exchange until the board of directors appoints a full-time chief executive.[6]
Contents |
History
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Products and Services
Initially, The Green Exchange is offering 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).
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.[7]
- 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 contract on The Green Exchange was 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]].[8]
- 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.[9]
- 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.[10]
References
- ↑ Home page. Green Exchange. Retrieved on January 15, 2008.
- ↑ "NYMEX and Other Major Market Participants to Form the Green Exchange, the World's Most Comprehensive Environmental Marketplace”. NYMEX. Retrieved on December 30, 2007.
- ↑ Press Release. NYMEX. Retrieved on March 24, 2008.
- ↑ Climate changing for pollution pacts. Chicago Tribune. Retrieved on March 24, 2008.
- ↑ Green Exchange Sets Up To Meet The Future. New Energy News. Retrieved on March 21, 2008.
- ↑ Nymex Joins With Banks to Create U.S. Carbon Exchange (Update2). Bloomberg.com. Retrieved on March 24, 2008.
- ↑ The Green Exchange: How Not to Miss a Trillion-Dollar Opportunity. Energy and Capital. Retrieved on March 21, 2008.
- ↑ Press Release. . Retrieved on March 24, 2008.
- ↑ Press Release. NYMEX. Retrieved on March 25, 2008.
- ↑ The Green Exchange Announces ICAP as Founding Member. NYMEX. Retrieved on April 8, 2008.
