EEX and Eurex to cooperate in CO2 trading

The European Energy Exchange (EEX) and international derivatives exchange Eurex announced today that they are to offer a common platform for emissions trading.

EEX and Eurex will offer trading in emission rights through the Eurex system, which both use. Eurex participants can trade EEX CO2 products via their existing infrastructure connections. EUA futures already listed on the EEX will be available for trading on the common platform from 5 December 2007. CER futures will follow at the beginning of 2008. EUA spot contracts and options on EUA futures will also eventually be offered on the platform.The two exchanges’ combined distribution networks will reach more than 600 trading member firms, including financial market participants in the UK and the US. E.ON Sales & Trading, Fortis Bank Global Markets and RWE Trading have already joined as market makers. Additional market makers are expected to join by the launch of the cooperation in December. The clearing houses of the two exchanges, European Commodity Clearing and Eurex Clearing, will cooperate in settling transactions to offer participants efficient and flexible clearing. Existing clearing relationships can be used. Risk management and collateral pledging can also be optimized across various product groups. Maik Neubauer, member of the EEX executive board, said the co-operation deal is part of EEX’s “internationalization strategy.” Peter Reitz, Eurex executive board member responsible for product and market development, said: “Through our cooperation, we are combining our respective strengths and bringing the European energy industry and the leading players on the international financial markets together on one platform.”