Trading Statement - Climate Exc

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 Trading Statement - Climate Exc Powered By Docstoc
					RNS Announcement
Embargoed until 7.00 a.m.
12 January 2009

                       CLIMATE EXCHANGE PLC
                            TRADING STATEMENT

Climate Exchange plc, the leading global environmental exchange operator, wishes to
provide an update on trading for the period 1 July 2008 to 31 December 2008


Volumes on our European Climate Exchange (“ECX”) have been exceptionally strong
with trading levels nearly treble the same period last year. H208 volumes increased
approximately 185% over H207, and full year volumes increased 175% over 2007.
Average daily volumes for full year 08 increased to almost 11,000 contracts, up from
8,500 contracts in H108. In 2008, ECX captured a 91.9% market share of EUA
futures and options traded and 86.6% market share for CERs. For 2009, we begin the
year with 357,078 contracts in open interest in comparison to 176,110 at the start of


We saw a nearly 4-fold increase in trading volumes across our Carbon Financial
Instrument (CFI) complex from 2007 to 2008. H208 CFI spot volumes on our
Chicago Climate Exchange (“CCX”) grew 111% over H207 and full year volumes
increased 202%. CFI Futures and Options on our Chicago Climate Futures Exchange
(“CCFE”) grew 605% in H208 over H207 and full year volumes increased 1054%.

In August CCFE successfully launched Regional Greenhouse Gas Initative (“RGGI”)
future and option contracts and traded over 27,000,000 allowances capturing a 95%
market share of the first mandatory US carbon market. Initial volumes have been
higher than the early days of the launch of the ECX European carbon contract. We
also launched “When Issued” national mandatory U.S. carbon allowance contracts
with expiry dates in 2013, 2014 and 2015 establishing a market-based price signal for
the anticipated U.S. mandatory market. Overall, CCFE volumes increased 3.2% in
H208 over H207 and full year volumes increased 72% despite the fact that the Federal
Court’s ruling on the Clean Air Interstate Rules (CAIR) adversely affected SO2 and
NOx emission trading. Fortunately, CAIR was reinstated on December 23rd.
One notable impact of the “credit crunch” has been a marked increase in volume on
the Insurance Futures Exchange (IFEX) which has experienced recent record volumes
as a consequence, in our view, of market requirement for a cleared exchange product.


CLE has continued to make progress in establishing the Climate Exchange as the
leader in the design and development of emissions markets worldwide. In China, the
China National Petroleum Corporation Asset Management Company, Ltd. (CNPC-
AM), Tianjin Property Rights Exchange (TPRE) and CCX announced in September
the opening of the headquarter offices of the Tianjin Climate Exchange (TCX),
China’s first integrated exchange for trading of environmental financial instruments.
As a joint venture between CNPC-AM, the City of Tianjin and CCX, TCX intends to
establish China as a pre-eminent center for environmental finance and the application
of market-based mechanisms to environmental management and natural resource

In December, TCX and Hong Kong Exchanges and Clearing Limited (HKEx) have
entered into discussions on possible avenues for cooperation in environmental
emissions markets. Details of the collaboration will be explored in the coming

Montreal Climate Exchange (MCEx) a joint venture between CCX and the Montreal
Exchange was launched on May 30th 2008. To date, the Exchange has traded 1, 179
contracts representing 117,900 metric tonnes of carbon dioxide. MCEx stands ready
to serve the needs of the evolving Canadian emissions markets as policy guidelines

Richard Sandor, Executive Chairman, said: “The last six months have shown that
despite the recent turmoil in capital markets, the interest of corporations, governments
and financial sector participants for emissions trading has remained strong. The
presidential election in the United States, the development and growth of regionally
mandated markets such as RGGI and the enthusiasm for market-based solutions to
enviromental problems in the Far East favour CLE’s mandate of providing transparent
and regulated markets that serve environmental and financial objectives.”

Neil Eckert, Chief Executive, said: “Our volumes and overall growth continue to be
strong. We enter a key phase which will see the inauguration of President Barack
Obama which we regard as a catalytic event for emissions markets.”

Volume Comparisons
                 H2 2008      H2 2007       %        FY 2008      FY 2007        %
                                         Change                               Change
   ECX          1,743,566      612,129   184.8%     2,809,821    1,038,321    170.6%
   CCX           234,635       110,872   111.6%      692,368      229,375     201.85%
   CCFE          196,805       190,667    3.2%       488,870      283,758      72.3%

Open Interest Comparisons
                            12/31/2008            12/31/2007            % Change
      ECX                    355,505               176,386               101.5%
      CCFE                   61,350                 31,290               96.1%


Richard Sandor, Chairman Climate Exchange plc                          001 312 554 3370
Neil Eckert, Chief Executive, Climate Exchange plc                        0207 382 7801
Matthew Whittell, Chief Financial Officer, Climate Exchange plc           0207 382 7802
Ivonne Cantu, Cenkos Securities plc                                       0207 397 8900
Peter Rigby/Alex Parry, Haggie Financial                                  0207 417 8989

About Climate Exchange plc

Climate Exchange plc is a holding company whose subsidiaries are principally engaged in
owning, operating and developing exchanges to facilitate trading in environmental financial
instruments including emissions reduction credits in both voluntary and mandatory markets.
Its three main businesses are the Chicago Climate Exchange (CCX) which operates a
voluntary but legally binding cap and trade system for greenhouse gas emissions, the Chicago
Climate Futures Exchange (CCFE) the leading U.S. regulated environmental products
exchange who’s contracts include mandatory U.S. emissions such as SO2 , NOx and RGGI
CO2 and the European Climate Exchange (ECX) which operates an exchange focussed on
compliance certificates for the mandatory European Emissions Trading Scheme.

About Chicago Climate Exchange, Inc. and Chicago Climate Futures Exchange

Chicago Climate Exchange is an Exchange whose objectives are to apply financial
innovation and incentives to advance social, environmental and economic goals. CCX
is the world's first and North America's only legally binding rules-based greenhouse
gas emissions allowance trading system, as well as the world's only global system for
emissions trading based on all six greenhouse gases. CCX members are leaders in
greenhouse gas management and represent all sectors of the global economy, as well
as public sector innovators. Reductions achieved through CCX are the only reductions
in North America being achieved through a legally binding compliance regime,
providing independent third party verification provided by FINRA and price

The Chicago Climate Futures Exchange (CCFE), a subsidiary of the Chicago Climate
Exchange, is a CFTC designated contract market which offers standardized and
cleared futures contracts on emission allowances and other environmental products.
Clearing services are provided by The Clearing Corporation, the only active
independent futures clearinghouse in the world. Market surveillance services are
provided by the National Futures Association, the industry wide, self-regulatory
organization for the U.S. futures industry.

About European Climate Exchange

The European Climate Exchange (ECX) manages product development and marketing
of Carbon Financial Instruments (CFI) futures and options contracts on CO2 EU
allowances (EUAs) traded under the EU Emissions Trading Scheme and Certified
Emission Reductions (CERs) issued under the Kyoto Protocol.

ECX CFI contracts are listed and traded on the ICE Futures electronic platform,
offering a central marketplace for emissions trading in Europe with standard contracts
and clearing guarantees. ECX/ ICE Futures is the most liquid, pan-European
Exchange for carbon emissions trading. More than 90 leading global businesses have
signed up for membership to trade ECX products. In addition, several thousand ICE
clients can access the market via banks and brokers.

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