EEX launches Derivatives Market for EUAA and ERU

Leipzig, 2 May 2012

On 30 April 2012, the European Energy Exchange launched the Derivatives Market for EU Aviation Allowances (EUAAs) expanding its product range with emission allowances which can be used by airlines for compliance purposes. In parallel, trading in futures on Emission Reduction Units (ERUs) was launched on Monday.

The first trading transaction (25,000 ERU at a price of EUR 3.64 per ERU) was concluded today between ?EZ and Citi. With the introduction of the new products, EEX has also gained a new Liquidity Provider. CF Partners will support liquidity on the market for EUA Futures (first three front years), CER Futures (first two front years) and EUAA Futures (first two front years).

CF Partners is an advisory, trading and investment firm specialising in renewables, commodities and the energy market.

"We are seeing growing interest for EUAAs and are committed to support counterparties by increasing the liquidity in the EUAA market. The EEX is a central point of the market and we are excited about our partnership with the exchange", says Jonathan Navon, partner at CF Partners. "The development of this market is an important step for airlines to successfully risk manage their carbon exposure, to become more efficient and competitive“.

“In addition to our Market Maker RWE Supply & Trading GmbH, CF Partners helps to provide tighter spreads and increasing liquidity on the Derivatives Market through their commitment.” says Steffen Köhler, Chief Market Officer of EEX.

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

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