EEX/Eurex launch new emission rights contracts

23 September 2009

The European Energy Exchange (EEX) and Eurex are expanding the offering of futures on emission rights. Pending approval of the EEX Exchange Council, the new futures will be launched on 27 October 2009.

The European Energy Exchange (EEX) and Eurex are expanding the offering of futures on emission rights. Pending approval of the EEX Exchange Council, the new futures will be launched as of 27 October 2009. The partners will be offering new EUA (European Emission Allowance) and CER (Certified Emission Reductions) futures with a different maturity and delivery date, in addition to the contracts already offered.

These new contracts are tailored even more closely to the requirements of market participants. EUA and CER futures currently mature on the last exchange trading day in November every year, with delivery on the first exchange trading day in December. In future, there will also be an EUA and a CER futures contract each of which matures in mid-December. The product extension is of particular advantage to market participants who are active on several CO2 exchanges and until now have had to take various delivery dates into account.

The existing contracts will continue to be listed, giving market participants a choice of delivery periods. Market makers have already indicated their support for the new contracts and expect liquidity to build up primarily in these contracts. EEX and Eurex are offering their clients a transfer of existing positions into the new contract free of charge to boost liquidity.

© Eurex