EEX Exchange Council Makes Way For CO2 Derivatives Market

European Energy Exchange(EEX) Exchange Council in his ordinary meeting on September 22, 2005, passed all necessary changes in regulatory framework for the implementation of a CO2 derivatives market. The new European Carbon Futures will enable price hedging for the EU Allowances trading up to the year 2012. Technically, everything is ready for a start in October. To ensure legal certainty for the participants in sales tax, EEX will not start the CO2 derivatives market before the binding statement of the tax authorities.

Beyond that, the EEX Exchange Council representing the EEX participants structure dealed with the public discussion of last summer on market power. In-depth analysis once again showed no sign for participants acting against the rules. But there is no responsibility of the Exchange Council for the power market outside of the EEX, so there were no wording on this. Especially, it has no political or legislative mandate to – for example – organise the publication of plant outages that is demanded from time to time.

The EEX operates a Spot and a Derivatives Market for energy and energy-related products and, with 128 trading participants from 16 countries, it is the energy exchange in Continental Europe which boasts the highest number of participants and the biggest turnover. Besides electricity and electricity futures and options, since March 2005 also CO2 Emission Allowances are being traded. The range of services provided by EEX is complemented with related activities, such as the joint clearing of exchange transactions and over-the-counter transactions (OTC clearing).