Vattenfall Energy Trading Netherlands NV has become a Liquidity Provider on the European Energy Exchange (EEX) Derivatives Market for Emission Allowances.
The Dutch trading entity of Vattenfall is admitted for trading on the spot and futures markets for emission allowances and will support liquidity in the EUA Futures market.
"We are very pleased to welcome Vattenfall NV as the new Liquidity Provider,” says Steffen Köhler (pictured), Chief Operating Officer of EEX. "This strengthens the price quality in our order book and makes our market place more attractive for other market participants."
Andreas Gelfort, Head of Benelux, UK Power and Emissions Trading at Vattenfall, says: "As a major market participant we aim to support the liquidity of emission products at EEX. This should create more trading interest and lower transaction costs for our customers. The energy transition makes trading more complex due to its interactions between various products. In our view, it’s highly beneficial to list all products on a single exchange as it not only facilitates trading but reduces barriers to entry for new entrants.”
Recently, EEX’s trading volumes on the secondary market for allowances have significantly increased. From January until July 2016 a volume of 145.2 million tonnes of CO2 was traded on the spot and derivatives market. Compared to the same period of the previous year, the volume increased more than five-fold (January to July 2015: 25.7 million tonnes of CO2). The introduction of a new price model, the improved trading screen and the extension of the product portfolio have contributed to this growth.
