Thursday, December 13, 2007
Wall Street Copying Our Center On Carbon Trading
The New York Mercantile Exchange parent Nymex Holdings and a group of Wall Street trading houses plan to launch an exchange for trading carbon dioxide emissions and other environmental products. The Chicago Climate Exchange launched in 2003. The Center launched its Green Carbon Bank (GCB) and Carbon Mercantile Exchange (CMX) in 2006. Nymex Holdings will call its service the Green Exchange and will offer environmental futures, options and swaps contracts.
Trading by the Green Exchange is expected to begin in the first quarter of 2008. The Regional Greenhouse Gas Initiative (RGGI) launches in 2009 and is a greenhouse gas reduction reduction program by nine Northeastern states. California also has a climate change program. Nynex will own 25% of the Green Exchange with the rest owned by Morgan Stanley, J.P. Morgan Chase and Credit Suisse Group. Richard Schaeffer will be CEO.
In addition to the Center, it appears that South Africa beat them to the concept and the name (South Africa Green Exchange).