News Center
Aug 23, 2011

Eurex

EEX and Eurex to launch New Incentive Model for CO2 Spot and Derivatives Market

Leipzig, Frankfurt/Main - On 1 September 2011, the European Energy Exchange (EEX) and the Eurex Exchange will introduce a new incentive model for the emissions market which aims at strengthening the EEX CO2 market in the competition with other trading platforms. The model targets the secondary market trading and is designed to increase the attractiveness of EEX prices (tight spreads) and hence liquidity of the markets.

The future incentive model provides for two volume thresholds: If the monthly volume achieved by a trading participant exceeds a level of 2 million tonnes of CO2 or a level of 4 million tonnes of CO2, the company concerned qualifies for a bonus of EUR 10,000 or EUR 20,000 respectively. This bonus will be paid to at maximum three trading participants that have traded the respective highest volumes above the thresholds specified in each month. All the products that are available for secondary trading in emission allowances, i.e. the Spot Market for EU Emission Allowances (EUA) and the Derivatives Market for EUA and Certified Emission Reductions (CER), will be considered.

All trading participants that are licensed for the Spot and Derivatives Market for Emission Allowances will automatically be considered for this model. The market makers for whom EEX and the Eurex Exchange offer a separate incentive scheme are not included in this model.

EEX and the Eurex Exchange offer their participants a platform for trading in EUA futures, CER futures and options on EUA futures. In the framework of this cooperation, which was launched in December 2007, Eurex participants can trade the CO2 derivatives products listed on EEX through their existing infrastructure and a simplified admission process.

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