NASDAQ OMX Commodities Europe hereby invites eligible participants to apply for market maker status in its carbon futures market maker program.
Obligations
Applicable products and market maker spread:
- EUA futures Dec 12-14 contracts. Spread: not wider than €0.06.
- EUA futures all Dec/Dec spreads 12-14. Spread: not wider than €0.06.
- CER futures Dec 12 contracts. Spread: not wider than €0.08.
- CER futures all Dec/Dec spreads 12. Spread: not wider than €0.08.
- All Dec/Dec EUA/CER spreads. Spread: not wider than €0.08.
NASDAQ OMX Commodities reserve the rights to extend the market making agreement to include products further out the curve when launched.
Quoting period(s):
The market maker’s quoting obligations shall apply on all trading days and trading hours for the applicable products. The marker maker will be released from quoting obligations for an aggregate period of up to 30% of the trading hours each month, provided that the member must always perform its quoting obligations in the period during which daily closing prices or final closing prices are set for the applicable products if such time period is within the quoting period(s).
Minimum volume: 20 (twenty) times the minimum allowance order volume (i.e. 20,000 allowances) on each side (i.e. buy/sell order) in each applicable product.
The carbon futures market maker program will run until further notice with a maximum of three market makers.
Benefits
The market makers meeting the market maker obligation will receive the following benefits:
- Free annual trading and clearing carbon membership.
- Free variable trading and clearing fees, including Over-The-Counter (OTC) clearing fees, for the products to which its market maker obligations apply.
- Four free ETS user licenses.
- A fixed monthly operations retainer of €20,000.
- A cash payment amounting to ten per cent (10%) of the effective transaction fee rate for each contract to which the market maker is a counterparty. The effective transaction fee rate is calculated by dividing the total amount of all exchange transaction fees received for the applicable products during one month with the total number of contracts traded in the applicable products that month, regardless of whether the market maker is counterparty to such contracts. The exchange transaction fees will vary depending on applicable rates from time to time and consequently also affect the effective transaction fee rate.
Further details may follow from the market maker agreement.
Application
Please submit an application to enter the market maker program to
anne-marit.rudby@nasdaqomx.com by 23 March 2012.
Applicants will be selected to join the carbon futures market maker program based on a set of criteria including technical and operational market making capabilities and market making experience. Successful applicants will be required to enter into a market maker agreement with the exchange.
Appointed market makers may fulfil their quoting obligations through trading on its own behalf or on behalf of clients, provided that such transactions are allocated to the designated market maker account.
Participants interested in applying for exchange membership should contact the exchange for further information.
Please follow this link for complete product details:
www.nasdaqomxcommodities.com/trading/productspecification/carbon/futures
www.nasdaqomxcommodities.com/trading/productspecification/carbon/spotforwards
www.nasdaqomxcommodities.com/trading/productspecification/carbon/options