Emission Alliance

EEX and Eurex Join Forces in CO2 Trading

Since December 2007, EEX and Eurex have been successfully cooperating in emissions trading. The alliance combines EEX's energy market membership and connectivity to the European power trading community with Eurex's financial market membership and global distribution network. Optimized trading and clearing processes set new standards with respect to market efficiency in emissions trading.

Under the cooperation, the following products are available for exchange trading and OTC clearing:

The Alliance contributes to the expansion and diversification of the global emission market and bears powerful advantages to the rising number of participants for trading and clearing of emission products.

Benefits for Market Participants

By joining forces, EEX and Eurex offer significant advantages to professional traders and to potential new participants in the global emission market:

Global Network

With a joint member base of about 600 trading participants, the cooperation opens up the most comprehensive and global distribution network for emissions trading, resulting in increased liquidity, improved market quality and transparency.

Easy Access

Emission products in the EEX/Eurex cooperation are traded through the Eurex® system. With the "plug & play" setup, Eurex participants are able to trade EEX CO2 products via their existing setups at minimal cost. Eurex members can access the EEX order book for emissions trading through a streamlined admission process.

Front-End Alternatives & Order Routing

The cooperation supports EEX and Eurex proprietary front-ends as well as all major ISV front-ends and all existing order routing systems. Furthermore, members can access the market through a connection via Trayport Global VisionTM.

Financial Market Standards

The EEX/Eurex cooperation provides fully integrated and efficient trading and clearing for exchange traded contracts as well as for over-the-counter (OTC) transactions based on established financial market standards.

OTC Block Trade Facility

Members are able to enter bilaterally agreed OTC transactions into the trading and clearing system. Registered OTC trades are then automatically cleared like regular exchange transactions.

The block trade entry facility is fully electronic and there are no size restrictions on block trades in EEX/Eurex cooperation products.

Choice of Clearing

Trades in EEX/Eurex cooperation products can be cleared by both Eurex Clearing AG (ECAG) and European Commodity Clearing AG (ECC). Physical settlement is carried out by ECC, a specialized Clearing House experienced in the physical delivery of commodities.

Cross Margining

The Clearing Houses offer cross margining for CO2 derivatives, such as EUA Futures and CER Futures. The offsetting of opposing risks allows for the significant reduction of margin requirements while retaining the necessary security. Inherent benefits for members are decreased cost of capital, increased liquidity availability, improved collateral management and lower operational costs.

Fast Physical Settlement

ECC offers fully electronic and integrated delivery management for spot and derivatives transactions with the fastest delivery process for emissions in today's market environment.

EUAs can be transferred to any eligible European registry account whereas CERs can be transferred to any eligible registry account worldwide.