The European Energy Exchange (EEX) and derivatives exchange Eurex will launch futures on certified emission reduction (CER) carbon credits on EEX on March 26.
To provide incentives for trading, the trading fees (exchange trading and over-the-counter registry) will be waived for the entire year 2008. Eurex members have been able to trade futures on the carbon credit associated with the European Union’s Emissions Trading Scheme (EU ETS) - EU Allowances (EUAs) - since they were listed on the EEX on December 5, 2007.
"For our market participants, CER contracts will be a valuable complement to existing EUA futures," said Peter Reitz, Eurex executive board member.
CERs are issued under the Kyoto Protocol for climate protection projects that industrialised nations carry out in developing countries. One CER is equivalent to one tonne of carbon dioxide reduction. CERs can now be used in part for emissions reduction compliance under the EU Emissions Trading System.
EEX and Eurex plan to launch the options on EUA futures in the second quarter of 2008.
More on Exchanges
Chicago-based exchange targets China, India and LatAm growth
Stock exchange group has “excess cash”, says group CEO
Increased volatility will spur demand for risk management tools in Asia
Onshore derivative market is the focus for Osaka Securities Exchange
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.