Isramart : EEX: Primary Market Auction Of EU Emission Allowances On Spot Market Launched Successfully

Isramart news:
Primary market auctioning of European emission allowances (EUA), which EEX runs on behalf of the Federal Environment Ministry, was launched on the Spot Market of European Energy Exchange AG (EEX) today. The first auction on the Spot Market of the exchange was held at 11:00 am.

The envisaged volume of 300,000 EUA was sold as planned. The total bidding amount exceeded, with roughly two million EUA, the specified auction volume considerably – participants bidded more than 6-fold the auction volume. In the auction, the price was established at EUR 12.67 per EUA.

The first auction on the Derivatives Market will be carried out tomorrow afternoon at 15:00 pm.

EEX will run the auctioning of the allowances which are not allocated free of charge on a regular basis: From January to October 2010 and 2011 300,000 EUA will be auctioned off on the Spot Market on a weekly basis and 570,000 EUA will be auctioned off in the Mid-December contract for the current year on the Derivatives Market. The remaining quantities will be auctioned off on the Spot Market in November and December. In total, the volume amounts to 41 million EUA for the year 2010. This corresponds to 10% of the total volume of EUA issued in Germany.

All trading participants licensed to trade in emission allowances on EEX can take part in the auctions without any further admission requirements. For the auction on the Derivatives Market this also includes all Eurex participants admitted to trading in the framework of the CO2 product co-operation. Clearing and settlement of the EUA is ensured through the established processes of European Commodity Clearing AG (ECC).

The European Energy Exchange AG (EEX) is the leading energy exchange in Continental Europe and operates market platforms for trading in power, natural gas, CO2 emission rights and coal. To this end, EEX relies on an open business model which generates flexibility and market coverage and thus higher liquidity through targeted spin-offs and partnerships. Through this systematic expansion of co-operations, EEX makes a decisive contribution to the integration of the European energy markets. EEX Group also includes European Commodity Clearing AG (ECC), the central clearing house for energy and related products in Europe.