European Climate Exchange

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European Climate Exchange
ECX.jpg
Founded 2005
Headquarters London
Key People Chief Executive of ECX is Patrick Birley
Products ECX CFI futures contract and the ECX CFI options contract.
Website www.europeanclimateexchange.com

The European Climate Exchange (ECX), launched by the Chicago Climate Exchange in 2005, manages product development and marketing of Carbon Financial Instruments (CFI) futures and options contracts on CO2 EU allowances traded under the EU Emissions Trading Scheme.

The ECX ranked number 40 in 2009 in the Futures Industry Association's global list of top 53 derivatives exchanges measured by volume, up 81.1% on 2008's volume figure.[1] The FIA list, published in early April 2010, reports that that the ECX's total volume for 2009 rose to 5.09 million from 2008's figure of 2.81 million.

Background

ECX CFI contracts are listed and traded on the ICE Futures U.S. electronic platform, offering a central marketplace for emissions trading in Europe with standard contracts and clearing guarantees provided by LCH.Clearnet. ECX/ ICE Futures is the most liquid, pan-European Exchange for carbon emissions trading. More than 80 leading global businesses have signed up for membership to trade ECX products. In addition, several hundred clients can access the market via banks and brokers.[2]

Since 2006, CCX, ECX and CCFE have been owned by Climate Exchange Plc, a publicly traded company listed on the AIM of the London Stock Exchange. Dr. Richard Sandor is chairman of Climate Exchange Plc. The current chief executive of ECX is Patrick Birley, son of the archaeologist Robin Birley.[3]

News

Total volume for the day, which included brokered trades in ECX contracts, amounted to over 9 million tonnes of emissions products –8.4 million of EUAs and 0.7 million tonnes of CERs. In the first six days of trading CERs, 3.5 million tonnes have been transacted on ECX/ICE Futures Europe.

  • On Feb. 21, 2008, ECX and ICE Futures Europe announced the imminent launch of futures contracts on Certified Emission Reductions (CERs), noting ECX had reached an agreement with LCH.Clearnet regarding the launch of the contracts. It was anticipated the exact date for the launch would be announced shortly.[5]This put to rest speculation of what may occur with the contracts.[6]

The ICE ECX CER Futures contract will be physically-delivered by the transfer of CERs (certified emission reduction units) from the seller to the buyer.[8]ECX’s sister company, the Chicago Climate Exchange, launched CCX Carbon Financial Instrument Futures in 2007.

References

  1. 2009 Annual Volume Survey. FIA magazine.
  2. About ECX. European Climate Exchange.
  3. "Traders With A Permit To Save The Planet". Times Online.
  4. Press Release. European Climate Exchange.
  5. Press Release. European Climate Exchange.
  6. "LCH, ICE dispute leaves ECX cold". Futures Mag.
  7. Rules for the ECX EUA Futures Contract Undergo Minor Amendments. European Climate Exchange.
  8. Press Release. ECX.