The Green Exchange has commenced trading, with Vitol SA, one of the worlds largest energy trading firms, completing the first trade in certified emissions reductions futures on the exchange.
The Green Exchange incorporates brokers, banks and investment firms such as Evolution Markets, Morgan Stanley, Credit Suisse, JPMorgan, Merrill Lynch, Tudor Investment Corp., ICAP and Constellation Energy. The new venture is set to compete with the biggest exchanges for trading carbon emissions credits, the European Climate Exchange the Chicago Climate Exchange, both of which are run by London-based Climate Exchange Plc.
It offers trading in global carbon-based contracts, such as carbon allowances under the European Union Emissions Trading Scheme, carbon credits under the U.N. Clean Development Mechanism, and verified greenhouse gas emission reductions used in accordance with voluntary carbon standards. It also offer contracts for US SO2 and NOx emissionsallowance trading programmes, as well as contracts for national “Green-e” certified voluntary renewable energy certificates.
Products are listed for trading on the Chicago Mercantile Exchanges Globex electronic trading platform and for clearing on the Nymex ClearPort platform. All contracts are cleared through the Nymex clearinghouse as regulated futures contracts.