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European Climate Exchange (ECX) and ICE Futures Europe today opened the gates for trading in Certified Emissions Reduction (CER) units.
The first screen trade in ICE ECX CER futures Contracts took place between Eneco Energy (cleared by BNP Paribas) and BP (cleared by Newedge Group) at 07.00hrs UK local time for 10 lots (equivalent to 10,000 CERs) of the December 2008 contract month at a price of €16.46 per tonne.
The first Exchange-for-Physical trade (cleared bilateral contract) was transacted between Barclays Capital and Essent Trading (cleared by UBS) at 09.04hrs UK local time for 10 lots (equivalent to 10,000 CERs) of the December 2008 contract month. The deal was brokered by TFS Energy.
ICE ECX CER futures allow users to lock in prices for Certified Emissions Reduction units delivered at set dates in the future and are a useful alternative to over-the-counter forward contracts, allowing users to secure transparent prices and reduce counterparty risk. Trades are cleared through LCH.Clearnet Ltd.
Patrick Birley, Chief Executive of ECX, commented: “We are very pleased to expand the range of existing products to include CERs which will bring a host of global players into the emissions trading sphere. This new contract will prove to be a boon to the carbon market as it gives participants access to a single liquidity pool for both EUAs and CERs.”
Access to the ICE for the trading of ECX CER futures Contracts can be secured by becoming an ICE Member or order-routing as a client of an ICE Member. There are currently 88 members, including major utilities, industrials as well as leading financial institutions, who have signed up to trade for clients or on their own behalf – a full list can be found at: https://www.theice.com/futures_members.jhtml
