Carbon Emissions

Discussion in 'Commodity Futures' started by vivanov, Oct 31, 2006.

  1. vivanov



    I hope this is the right forum for my inquiry. I'm interested in trading carbon emissions (greenhouses gases). I did a little research and found that the Chicago Climate Exchange (CCE) facilitates such trading, with European Climate Exchange (ECX) being the european subsidiary of CCE. The ECX Carbon Financial Instruments are listed on ICE (formally IPE).

    However, I could not find any brokers offering such trading. Do I necessarily need a broker in order to trade these instruments? Is there anyone with a little bit more experience and/or knowledge in this area? :)

  2. I did Renewable Energy Credit trading, similiar market.

    This is a classic style market, through brokers via phone. It's not too speculative. The only real trading is aggregating smaller credits and reselling a large block to a real buyer. These opportunities are out there but it involves you to be out there knowing who does what and where to get the small orders.

    You will have to pretty much do business with power brokers such as Amerex Emissions, GT Energy and one other (forgot the name). It's a small industry run pretty much out of Houston. There are also emissions trading companies who try to scalp by buying up smaller lots and reselling. Slightly different from aggregating which is what we did.

    There is an electronic exchange for it but the volume is still too low. It takes decades for such exchanges to be established.

    If you want more info, send me a PM.
  3. Stacked


    My friend has a Membership to the CCE I think when he did that you got some type of electronic platform to trade carbon on.

    I'm not sure what all the details were
  4. artis74


    Its traded on the ICE platform. This is not a market you flip in. Firms hold these credits for years, especialy the rarer vintages. The guys at the CCX make it sound like its al liquid as mini s+ps when they may do at max 15 trades per day.
  5. Stacked


    The only good thing I ever saw in the CCE is that Sandor will probaly let ICE buy it and CCE member could get some ICE stock....

    I guess too if there is ever sweeping changes in the US for emsions CCE will be ready.
  6. contango


    You could spread trade the EU carbon emissions price through a spread broker such as IG Index in the UK.

    If in the US, check out evomarkets as a broker.
  7. I'm just starting to have a go on these in ECX as a little sideline to my main trading in STIRs... anyone got any pointers? Been jobbing spot month with 1 or 2 lots aiming for around 10 ticks... am I picking up centimes in front of the proverbial steam roller?