Biofuels swaps
Interest in biofuels swaps has grown rapidly over the last two years, but further regulatory clarity is needed if the market is to mature, say participants. Gillian Carr looks at the outlook for the global biofuels swaps market
In the past two years, interest in both European and US biofuels swaps markets has grown markedly following regulation in the US and Europe incentivising or mandating the increased use of biofuels. This has led to an increase in biofuels production and in turn an increase in demand for hedging products, say market participants.
Volume on the Chicago Mercantile Exchange (CME) ethanol futures
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