PRESS RELEASE 10/2004
(Lysaker, 04 November 2004)
Nord Pool, The Nordic Power Exchange will start trading and clearing of European Union Allowances (EUA). The
products listed will be Forward contracts with physical delivery.
The EU Emission Trading
Scheme is the main policy being introduced across Europe to handle emissions
of carbon dioxide and other greenhouse gases, countering the threat of climate
change. The scheme is announced to commence on 1 January 2005. The first phase
runs from 2005-2007 and the second phase will run from 2008-2012 to coincide
with the first Kyoto Commitment Period.
Nord
Pool will launch exchange trading and clearing of EU Allowances (EUA). In
addition, a clearing service for standardized OTC traded EUAs will be offered.
Trial trading is planned to commence as of January 2005. Nord Pool’s first step will be listing of Forward EUA contracts with
physical delivery. A spot contract will be introduced after 1 March 2005, when
the national registries are in operation and when the Allowances are
available. To operate the market Nord Pool will use the Electronic Trading
System (ETS) PowerCLICKTM, offering continuous trading. In addition
Nord Pool will offer manual Market Place Service functionality for those
participants which do not have direct access to the ETS. PowerCLICKTM
is today used for the Nordic power market and is already installed by a large
number of Nord Pool’s customers across Europe.
Nord
Pool Clearing will act as counterparty in all exchange trades guaranteeing
both cash settlement to the seller and physical delivery to the buyer of the
contracts. The solution will include netting of positions between Nordic power
contracts and EUA contracts, so that the participants trading in both markets
can utilise their capital in the most efficient way. In the trading period a
pre-delivery option will be available for sellers. This will enable
participants to reduce their daily margin calls by delivering the allowances
physically to Nord Pool Clearing’s account in an agreed register.
Nord Pool’s Market Data Services will offer access to trading data related to the EUA market to information distributors, exchange members and other end-users through its Feed and FTP services.
“The establishment of the
Emissions Trading Scheme is an important element in achieving the goals set by
the European Commission for managing the risk of global climate change”,
says Torger Lien, President and CEO of Nord Pool ASA. “Through
our introduction of EUAs as new products for trading and clearing on the
exchange we will enable our customers to manage their European carbon risk
through a regulated market place”, he continues.
All relevant documents (Product specifications, Fees
and Rulebook & Agreements) can be accessed at www.nordpool.com,
including a guide how to become a member at Nord Pool.
Additional information is available via the following links:
Product
spesifications
Fees
Rulebook &
Agreements
Clearing examples
How to become a member in the Allowances market
For further information, please contact Nord Pool ASA:
Torger Lien, President & CEO, mobile +47 918 88 112
Hartvig
Munthe-Kaas, Vice President, Corporate Communication, tel.:
+47 67 52 80 84, mobile
+47 957 06 505