Day Trading & Forex Forum

squaregains

See IG are offering a market in Carbon Emissions - any view / traders / good sources of info on this market place ?

danfreek

How bizzare, It doesn't look like the price changes much, it hasn't changes in over an hour. It would be very interesting to find out about it though if anyone does have any info.

Robertral

these things are very volatile.....10day hist vol of 113%, thats pretty volatile in my book pal

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squaregains

Robert - where can you get price / analytics for this instrument from? Thanks

danfreek

yeah, sorry, I didn't mean exactly what I said

I meant that it doesn't seem to move very often. I really should think about what I'm typing.

squaregains

The output of some quick research I did just now - looks interesting given the vols.

What the Product is all about:

http://www.europeanclimateexchange.com/index_flash.php


Traded through IPE:

Historical pricing

http://www.theipe.com/historical/eod...ate=07/26/2005


An extract from a FAQ - Taken from their site:


Q: The price of EUAs has risen meteorically in the past few months. Any comments?

A: Because of the uncertainty on what the allocations are, and problems of registries, people are unlikely to sell what they’re uncertain of having. Lack of sellers is probably one reason why price has been going up recently. I cannot comment on what the price of carbon should be, but I believe that at the moment it is being driven more by political drivers than fundamental.

Over time the price of carbon should tend towards the switching cost between coal and natural gas for electricity producers; and it should be the cost of capital to shift from an inefficient process to an efficient process. This is known as the marginal abatement cost, i.e. for an installation what would it cost to reduce emissions by between 5% to 10 % etc. I am not very sure what that price is, but it would approximate the difference between the price of coal and the price of natural gas, which determines how much carbon is emitted per KW of electricity.


My question -> Anywhere to get free delayed charts for some basic TA?

Robertral

Bloomberg terminal

__________________
"I'm resourceful, I'm creative, I'm young, unscrupulous, highly motivated, highly skilled. In essence what I'm saying is that society cannot afford to lose me. I'm an ASSET"

TWI

This market has potential to be huge. I have been meeting with energy desks from a number of banks over the past few weeks and the feeling is that this market is going to grow very quickly. Already the amount of activity has surpassed expectations and the fact IG are listing that and not other European energy markets that have been around for years is indicative of this sentiment.
EU has a target to cut emissions by 8% and have 22% of power production from renewables by 2010 there will have to be a huge change in generation mix over the coming years and emissions will figure in the portfolio of not only energy sector businesses but equity funds in the utilities sector and energy spec books.

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