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The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) announced todaythe introduction of the NASDAQ OMX Carbon Index Series (NOCO2), a family ofindexes designed both for derivatives trading and to act as a barometer for theglobal carbon market. The announcement was made in a keynote speech by NASDAQOMX's CEO Bob Greifeld at the Federation of European Securities Exchanges'(FESE) convention in Stockholm.
The NASDAQ OMX Carbon Index Series is the first rules-based family of indexesproduced by any exchange to act as a price indicator for the global carbonemissions markets. The indexes are designed to provide accurate, reliable, andtransparent pricing for the world's carbon markets.
“The NASDAQ OMX Carbon Index Series promotes carbon emissions trading acrossall markets. It provides investors the opportunity to easily value carbonreduction credits, which can lead to increased liquidity and attention to thecarbon reduction market” said Bob Greifeld, CEO of NASDAQ OMX. “We believe thatthe launch of the NOCO2 Series will bring heightened visibility to this issue,and that index derivatives will create tools for investors to easy access thecarbon market.”
The NASDAQ OMX Carbon Index Series is comprised of transparent, liquidity-basedindexes, consisting of Benchmark and Tradable Indexes.
The NASDAQ OMX Carbon Index Series consists of 12 indexes, six Benchmark andsix Tradable indexes. The indexes are calculated in both Euros and US Dollars. The Tradable Indexes are calculated as Excess Return Indexes and represent theweighted performance gained through the price development of the underlyingfutures, including roll returns. NOCO2 Indexes will be disseminated throughTargin. The Indexes commenced calculation on June 16th with a value of 500.00.
The NASDAQ OMX Carbon Index Series is currently comprised of European UnionAllowances (EUA) and Certified Emission Reduction (CER) futures contractstraded at the European Climate Exchange, Nord Pool and the European EnergyExchange. However, all carbon emission futures traded at any recognizedexchange, linked to an underlying carbon emission reduction program, areeligible for inclusion as soon as they reach the minimum liquidity requirementsfor the indexes. To view the list of indexes in the NASDAQ OMX Carbon family,visit www.omxnordicexchange.com/products/indexes/
