EEX enlists partners, enhances offering in push to regain CO2 market share

Published 14:05 on May 18, 2015  /  Last updated at 14:09 on May 18, 2015  /  EMEA, EU ETS  /  No Comments

German energy exchange EEX has enlisted new trading partners and has introduced additional incentives for members in an effort to boost EUA volumes on its platform and regain market share from leader ICE Futures Europe.

German energy exchange EEX has enlisted new trading partners and has introduced additional incentives for members in an effort to boost EUA volumes on its platform and regain market share from leader ICE Futures Europe.

Swiss-based Axpo Trading and Slovenia-headquartered Belektron will begin as market markers for EEX’s spot and derivatives products from June 1, while Czech utility CEZ will also act as a liquidity provider, EEX said in a statement. Belektron was named as a spot EUA market maker by EEX back in February.

“In addition to the companies mentioned, there are further market partners who will support our emissions secondary market as of June. However, those participants do not wish to be named,” an EEX spokeswoman told Carbon Pulse, adding that Poland’s PGE had recently stopped making markets on EEX after the firm halted market making activities.

EEX also said it last month introduced an “initiator-aggressor” programme, where trading and clearing fees are waived for the counterparty that initiates a transaction.

Additionally, EEX said it would charge fees for only one leg of spot-futures time spreads, and that it would offer a 50% rebate on trading and clearing fees for members who trade more than 5 million tonnes per month.

EEX posted a €300,000 drop in its carbon trading revenues in fiscal 2014 due to backloading erasing a large chunk of the volume it sells annually via government auctions.

EEX said the decrease was offset slightly by a 6% rise in secondary spot trading, but that it had experienced a severe drop in EUA futures trading compared to 2013.

London-based ICE Futures Europe continues to dominate European emissions trading, controlling more than 95% of all exchange-handled secondary market volume.

EEX also on Monday said it had recently introduced inter-product spreads, for example EUA-EUAA, as well as monthly and quarterly EUA futures contracts to improve liquidity.

The monthly contracts cover the current and next two months, while the quarterly futures will cover the current and next 11 quarters.

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