The Green Exchange, which initiated trading last week on a range of environmental futures and options contracts, reported a strong first-week of trading. Volume on The Green Exchange’s carbon contracts alone totaled 1.59 million tons, making it the most successful launch of exchange-traded carbon contracts.
At the close of the holiday-shortened week of trading The Green Exchange reported the following volume:
- European Union carbon allowances futures (EUAs) (all delivery dates): 280 contracts
- EUA options (all delivery dates): 1,000 contracts
- Certified Emissions Reductions (CERs) (all delivery dates): 310 contracts
- SO2 allowances (all delivery dates): 236 contracts
- NOx allowances (all delivery dates; annual and season contracts): 10 contracts
Each EUA contract is equal to 1,000 EUAs or 1,000 tons of CO2 equivalent. Each CER contract is equal to 1,000 EUAs or 1,000 tons of CO2 equivalent. Each SO2 contract is equal to 100 SO2 allowances. Each NOx contract is equal to 10 NOx allowances.
The first slate of environmental futures and options contracts were introduced on the New York Mercantile Exchange, Inc. at 6:00 PM ET, Sunday, March 16 for trade date Monday, March 17. The first transaction, which was for 25 CER futures contracts with December 2008 delivery, was logged shortly after market open.
Andrew Ertel, President & CEO of Evolution Markets Inc. (a partner in the exchange), said, "Despite uncertainty in the global financial sector and a holiday-shortened week, we were able to have the best opening week ever for a carbon exchange."
About Green Exchange
The Green Exchange initiative was introduced by NYMEX Holdings, Inc. (NYSE: NMX) in December 2007, with Evolution Markets, Morgan Stanley, Credit Suisse, JPMorgan, Merrill Lynch, Tudor Investment, Constellation Energy, Vitol SA, and RNK Capital. The new exchange will offer a comprehensive range of environmental futures, options and swap contracts for markets focused on solutions to climate change, renewable energy and other environmental challenges.
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