Tradition Financial Services (TFS) has announced its coal and environmental products desk brokered the first transaction on the NYMEX emissions contract. The January 2006 future on Vintage 2006 NOx allowances transacted at $2800/allowance for 100 allowances. NYMEX offers SO2 and NOx contracts for Vintages 2005 through 2008.
Eric Klein, a TFS senior emissions broker, said, “The NYMEX products offer an important new risk management tool for market participants. TFS is proud to have successfully completed the first transaction.” He continued, “The contract helps to remedy counterparty credit issues and facilitate monthly delivery throughout the year. Interest in the emissions marketplace should continue to grow among non-traditional players now that NYMEX has added the contracts to their product offering.”
TFS’s coal and environmental products desks are located in New York, London, Frankfurt and Sydney.