The London Energy Brokers' Association (LEBA) announces today its members will offer trades in the over-the-counter European emissions market for direct clearing through LCH.Clearnet.
This will start on Wednesday, 1 February.
LEBA members currently broker up to an estimated 85% of the European emissions market trades. Under this new initiative, trades transacted with LEBA brokers can be registered with LCH.Clearnet for clearing, thereby removing counterparty risk.
Ron Levi, managing director, Europe, at GFI Group – a member of LEBA - said, "The emissions market demonstrates how energy companies and financial institutions can help combat climate change. By removing counter-party risk, a clearing solution will encourage growth and improve liquidity in this new and important market."
Richard Heyman, Director – Exchange & Commodity Derivatives at LCH.Clearnet said, "We are delighted to be working with LEBA in this important initiative. It is a further development of our energy clearing service, reflecting our position as Europe’s leading independent central counterparty."
LEBA was formed in 2003 to represent brokers in London's oil, power, natural gas and related markets. It promotes the business interests and general welfare of the OTC energy broking industry in the UK. The seven LEBA member firms who currently trade the LEBA Carbon Index are:
- CO2e Limited
- Evolution Markets Limitedhttp
- GFI Brokers Limited
- ICAP Energy Limited
- Prebon Marshall Yamane (UK) Limited
- Spectron Energy Services Limited
- Tradition Financial Services Limited