Nasdaq OMX introduces global carbon indexes

Source: Nasdaq OMX

The Nasdaq OMX Group (NASDAQ:NDAQ) announced today the introduction of the Nasdaq OMX Carbon Index Series (NOCO2), a family of indexes designed both for derivatives trading and to act as a barometer for the global carbon market.

The announcement was made in a keynote speech by NASDAQ OMX's CEO Bob Greifeld at the Federation of European Securities Exchanges'(FESE) convention in Stockholm.

The NASDAQ OMX Carbon Index Series is the first rules-based family of indexes produced by any exchange to act as a price indicator for the global carbon emissions markets. The indexes are designed to provide accurate, reliable, and transparent pricing for the world's carbon markets.

"The NASDAQ OMX Carbon Index Series promotes carbon emissions trading across all markets. It provides investors the opportunity to easily value carbon reduction credits, which can lead to increased liquidity and attention to the carbon reduction market" said Bob Greifeld, CEO of NASDAQ OMX. "We believe that the launch of the NOCO2 Series will bring heightened visibility to this issue,and that index derivatives will create tools for investors to easy access the carbon market."

The NASDAQ OMX Carbon Index Series is comprised of transparent, liquidity-based indexes, consisting of Benchmark and Tradable Indexes.

The NASDAQ OMX Carbon Index Series consists of 12 indexes, six Benchmark and six Tradable indexes. The indexes are calculated in both Euros and US Dollars. The Tradable Indexes are calculated as Excess Return Indexes and represent the weighted performance gained through the price development of the underlying futures, including roll returns. NOCO2 Indexes will be disseminated through Targin. The Indexes commenced calculation on June 16th with a value of 500.00.

The NASDAQ OMX Carbon Index Series is currently comprised of European Union Allowances (EUA) and Certified Emission Reduction (CER) futures contracts traded at the European Climate Exchange, Nord Pool and the European Energy Exchange. However, all carbon emission futures traded at any recognized exchange, linked to an underlying carbon emission reduction program, areeligible for inclusion as soon as they reach the minimum liquidity requirementsfor the indexes.

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