Bolsas y Mercados Españoles plans to launch an electronic greenhouse gases emission trading platform called Code-BME, Comercio Organizado de Derechos de Emisión de BME, in the second half of September.
BME, the fourth largest stock market operator in Europe and the eighth in the world in terms of trading volumes, will through this initiative apply its extensive know-how and experience in electronic trading to the development of such thriving activity sectors as energy and the environment.
BME's goal is to offer the market as a whole an efficient greenhouse emission trading system to facilitate emissions trading and in this way promote compliance with the Kyoto Protocol and the objectives it sets in connection with climate change.
Access to the trading platform will be Internet-based and it will take place by means of a contract through which individuals and legal entities will be able to join CODE-BME.
About CODE-BME
CODE-BME's platform is designed to increase the efficiency of emissions trading through the creation of a counterparty matching system, in contrast with individual management, which requires bilateral trading of emissions rights.
Trading will be carried out on the spot market and it will be possible to introduce orders between 9:00 and 13:00 hrs. At the close of trading an equilibrium price will be established for trading. The system will feature an integrated settlement mechanism.
In future, in addition to greenhouse gases emissions it will be possible to trade the so-called Kyoto Units (i.e Certified Emissions Reductions or CER etc). This will take place as the connections between national and international registries are implemented.
The efficiency objective set by CODE-BME gives cost-efficiency top priority so as to facilitate participation in the system. As a result, all transactions will be charged at a "flat rate" of € 25 per trade, irrespective of the amount traded in each transaction.
Trial period
CODE-BME opens a trial period that will last up to the system's effective implementation. During this period interested parties will have the chance to carry out trading simulations on the platform's website, through individual and restricted access.
In addition to this, several events have been scheduled for July during which the CODE-BME platform will be presented to interested sectors.