European Climate Exchange (ECX) and the International Petroleum Exchange (IPE) today announced that the first day of trading for ECX Carbon Financial Instrument (ECX CFI) futures contracts saw 108,000 tons of CO2 traded.
The exchange traded 108,000 tones–108 lots, and the price range was EUR16.80 to EUR17.40 with a closing price for December 2005 of EUR6.85. The first trade took was for 10 lots (equivalent to 10,000 tonnes of CO2) at a price of EUR17.05. The trade was cleared by Calyon Financial SNC (a subsidiary of Calyon Corporate and Investment Bank) and ABN AMRO Futures Limited.
“The Exchange increases liquidity through greater price transparency and this deal confirms our support for the development of the EU Emissions Trading Scheme,” said Emma Johansson, BP’s lead emissions trader.
Gareth Halstead, Lead Trader at E.ON UK plc., said: “E.ON UK is excited to be at the beginning of trading in ECX CFI futures contracts on the IPE. The launch of futures contracts is a decisive step in the development of a liquid pan-European emissions market.”
The ECX CFI futures Contract, which is listed for electronic trading on the IPE, is the first exchange-traded CO2 futures contract for the European Union’s Emissions Trading Scheme. ECX CFI futures allow users to lock-in prices for emissions allowances 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.