As always Cantor Environmental Brokerage does not trade for its own account. All allowances purchased in the auction or traded in the open market are for our clients. It is Cantor Environmental Brokerage 's policy to keep the identity of our clients and their positions in the market in strict confidence.

SO2 Option Volatility Down As prices continue to range between the $160s and $170s level, volatility has fallen off. As a result, option structures have seen a slide in premium prices. This continues to occur as the market looks for some direction. Traders have continued to focus on weather, fuel prices, and capacity as factors that could affect prices. Thus far, these variables have been relatively stable. Why Are NOx Prices Down? The price trends in vintage ‘02 allowances remained relatively the same (in the $800s) for the entire month, until late today. Vintage ‘02 allowances traded at $790/ton, immediately followed by these transactions: (1) vintage ‘03 and ‘04 allowances trading at $4,812.50 ($5,050 was last price); (2) vintage ‘03 trading at $4,850 ($5,000 was last trade); and (4) vintage ‘04 trading at $4,675 and $4,700 ($5,000 was last trade). The sharp contrast in future vintages is the result of bids being hit. Did the downward tick in the vintage 2002 allowances scare a future vintage seller? Could this be a new trend? It is too soon to tell. We will keep you advised as the future vintage allowance market continues to evolve.

Greenhouse Gas Reductions Portfolio: Cantor Environmental Brokerage sister company, assists companies to hedge their greenhouse gas exposure and potential limitations on their ability to emit greenhouse gases. CO2e.com experts provide risk managers with options to create a diverse portfolio of greenhouse gas reductions and offsets. Transactions include simple purchases and sales to structured options transactions. CO2e.com currently represents a diverse family of reductions including: (a) Renewable energy, energy efficiency and land-use projects expected to be eligible for credit under the Clean Development Mechanism in South and Central America, Asia, and Africa; (b) Renewable energy, energy efficiency, methane capture and recovery, and land-use projects in Australia, Canada, and Europe; and (c) Renewable energy, land-use, and methane capture and recovery projects in the United States. Prices vary but range from $1.00 - $2.00 per ton CO2 equivalent and increase up to $8.00 depending on vintage year, risk guarantees, volume, and contract structure. Options prices are according to structure. For details call Corinne Boone at 416-350-2177.