A comprehensive range of environmental futures and options are expected to begin trading during the first quarter of 2008 on the New York Mercantile Exchange (NYMEX), said the exchange on Wednesday.
The NYMEX Holdings Inc., the parent company of the NYMEX, announced Wednesday the formation of the Green Exchange venture with Evolution Markets Inc., Morgan Stanley Capital Group Inc., Credit Suisse, JPM organ, Merrill Lynch, Tudor Investment Corp., ICAP and Constellation Energy.
The new exchange will also offer swap contracts for markets focused on solutions to climate change, renewable energy, and other environmental challenges.
NYMEX Chairman Richard Schaeffer said, "The broad slate of new environmental products will perfectly complement NYMEX's energy complex, enabling the Green Exchange customers to efficiently manage the cost of reducing their carbon footprint."
"The Green Exchange expects to focus on both global and regional compliance trading while also building liquidity and demand for the highest quality voluntary standards in the market. Underlying all this will be the ability for all market participants to manage risk and take positions in environmental derivatives markets," he added.
Initially, the Green Exchange intends to offer trading in global carbon-based contracts, such as carbon allowances under the European Union Emissions Trading Scheme, carbon credits under the United Nations Clean Development Mechanism, and verified greenhouse gas emission reductions used in accordance with voluntary carbon standards.
The Green Exchange venture is expected to launch as a U.S. Commodity Futures Trading Commission-regulated exchange during the first quarter of 2009, pending regulatory approval.
Source: Xinhua/agencies
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