Green Exchange Holdings LLC

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

The Green Exchange (GreenX) 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

Green Exchange began trading its California Carbon Allowance (CCA) futures contract on August 29, 2011. The contract will serve as a compliance and risk management tool for market participants operating within the California Emissions Trading Scheme (ETS). It is currently the only California ETS product traded on an exchange regulated by the CFTC.[5]

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 also plans to 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.[6]

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 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]].[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]
  • 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). [11]
  • On January 24, 2011, Green Exchange migrated its European and US futures and options contracts from the New York Mercantile Exchange to the Green Exchange designated contract market. In other words, the exchange became a fully independent exchange.

Key People

References

  1. Partners. NYMEX.
  2. Home page. Green Exchange.
  3. "NYMEX and Other Major Market Participants to Form the Green Exchange, the World's Most Comprehensive Environmental Marketplace”. NYMEX.
  4. CME Group's Green Exchange gets CFTC approval. Reuters.
  5. First Trade of California Carbon Futures on GreenX. GreenX.
  6. Partners. NYMEX.
  7. The Green Exchange: How Not to Miss a Trillion-Dollar Opportunity. Energy and Capital.
  8. Press Release. .
  9. Press Release. NYMEX.
  10. The Green Exchange Announces ICAP as Founding Member. NYMEX.
  11. CME's Green Exchange Files For Independent Exchange Status. Nasdaq.
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