EEX/Eurex launch new emission rights contracts

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 and CER 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 instead. The product extension is of particular advantage to market participants that are active on several CO2 exchanges and have until now had to take various delivery dates into account.

The exact contract specifications are available here:
http://www.eex.com/en/document/53671/EEX_Contract_Specifications_Emissions_Okt2009_en.pdf

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 contracts free of charge to boost liquidity.

Participants have to deliver the emission rights to the registry account of the European Commodity Clearing AG (ECC) at the German Emissions Trading Authority (DEHSt) two business days after maturity. The ECC then books the emission rights to any registry account within the European Union on the same day.

EEX and Eurex provide a platform for trading EUA futures, options on EUA futures, and CER futures for the 2008-2012 Kyoto phase. This cooperation which started in December 2007 allows Eurex participants to trade CO2 products which are listed on the EEX via their existing infrastructure and a simplified admission process.