RTC/ERC BULLETIN
MARKET PRICE INDICES
 


October SO2 and NOx EA MPI Headlines

  • SO2 EA MPI Up 1.20%
  • NOx EA Prices Slip Even Further

What are the TradeSpark SO2 and NOx MPIs?
The TradeSpark Market Price Indices (MPIs) are prices that reflect current market conditions for Clean Air Act Title IV SO2 and Ozone Transport Commission NOx emission allowances (EAs). The MPI is an average of the following three numbers (where available) (Note: fees and commissions are not factored into the MPI):
  • Recent price - prices from the most recent transactions (sales, swaps, and options) either executed by TradeSpark and/or reasonably believed by TradeSpark to have occurred. Also note that the MPI does not include transactions that are reported as retirements or facility changes of ownership because such transactions may not be reflective of current market conditions
  • Lowest offer price -lowest price, reported to TradeSpark, at which a seller is willing to sell.
  • Highest bid price - highest price, reported to TradeSpark, at which a buyer is willing to buy.

Note: All information contained here is obtained by TradeSpark from sources believed to be accurate and reliable. However, because of the possibility of human and mechanical errors, as well as other factors, such information is provided "as is" without warranty of any kind and TradeSpark, in particular, makes no representation or warranty as to the accuracy, timeliness, or completeness of this information. Under no circumstance shall TradeSpark have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling interpreting, analyzing, editing, transcribing, transmitting, communicating, or delivering any such information, or (b) any direct, indirect, special, consequential, or incidental damages whatsoever even if TradeSpark is advised in advance of the possibility of such damages, resulting from the use of, or inability to use, any such information. The data and information contained herein are, and must be construed solely as statements of opinions and not statements of fact or recommendations to purchase, sell, or hold SO2 or NOx EAs. All prices are merely indications of interest, do not represent firm bids and offers, and their terms are subject to change without notice. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH DATA OR INFORMATION OR OTHER OPINION IS GIVEN OR MADE BY TRADESPARK IN ANY FORM OR MANNER.


SO2 MARKET PRICE INDEX and NEWS:
(Call 212 938-4250 or 800-228-2955 ext 5 for description)

View SO2 MPI History

Bids Offers Trades OCTOBER
MPI
Price/Volume 2,500 @ $152.75
========
2,500 @ $154.50
========
not listed
============
Weighted Average $152.75 $154.50 $152.77 $153.34
* Bid and offer for vintage 2000 allowances.

Immediate Settlement:
Period of Stream Best Prices ($/Allowance) Maximum Volume
Term Start   End Bid to Buy Offer to Sell Bid Offered  
1 year
1 year
1 year
1 year
1 year
2000
2001
2002
2003
2004
$152.75
$151.61
$150.86
$149.02
$147.58
$154.50



2,500
2,500
2,500
2,500
2,500
$2,500



Allowances
Allowances
Allowances
Allowances
Allowances

Swaps:
Swap Ratio's against vintage 2000 allowances
2001 2002 2003 2004
 
Offer 0.75% 1.25% 2.50% 3.50%
Ratios for base years other than 2000 are available upon request.
DISCLAIMER: ALL PRICES ARE MERELY INDICATIONS OF INTEREST, DO NOT REPRESENT FIRM BIDS AND OFFERS AND THEIR TERMS ARE SUBJECT TO CHANGE WITHOUT NOTICE. THE ABILITY TO EFFECT TRANSFER OF ALLOWANCES IS SUBJECT TO THE FINAL PROCEDURES GOVERNING THE TRANSFER OF ALLOWANCES WITHIN THE ENVIRONMENTAL PROTECTION AGENCY'S ALLOWANCE TRACKING SYSTEM.

SO2 EA Market Beat
The TradeSpark SO2 EA Market Price Index increased by 1.20 % this month to $153.34 from $151.52 in September. The SO2 EA market traded in a tight range throughout the month of October. Market participants managed to break out of the $149.00 to $153.00 range during the last couple days. Despite low volatility in the spot market the options market remained active throughout the month. The trading range this month was $149.50 to $156.00. The last trade went off at $154.00.

As always Cantor Fitzgerald 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 Fitzgerald’s policy to keep the identity of our clients and their positions in the market in strict confidence.

SO2 MPI Graph


NOx MARKET PRICE INDEX and NEWS:
(Call 800-228-2955 ext 5 for description)

View NOx OTC MPI History

BEST BIDS TO BUY 1999: 50 tons @ $315/ton
2000: 50 tons @ $350/ton
2001: 50 tons @ $450/ton
2002: 50 tons @ $425/ton
BEST OFFERS TO SELL 1999: 50 tons @ $340/ton
2000: 50 tons @ $380/ton
2001: 50 tons @ $525/ton
2002: 50 tons @ $500/ton
RECENT TRADE PRICES $325/ton - 1999
$370/ton - 2000
$375/ton - 2000
$330/ton - 1999
$350/ton - 2000
$415/ton - 2000
$370/ton - 1999 x3
$435/ton - 2000 x3
$335/ton - 1999
$425/ton - 2000
$525/ton - 2001
$400/ton - 2000
$325/ton - 1999
$360/ton - 1999
$360/ton - 1999
$500/ton - 2000
$410/ton - 1999
$425/ton - 1999
$425/ton - 1999
$440/ton - 1999
$525/ton - 2002
$490/ton - 2000
$500/ton - 2000
$447/ton - 1999
in chronological order
MARKET PRICE INDEX
1999 = $328/ton (down $41)
2000 = $365/ton (down $55)
2001 = $496/ton (no change)
2002 = $479/ton (no change)

NOx EA Prices Slip Even Further
The NOx EA Market for October saw moderate trading with prices continuing to decline. With the ozone season ending in September, compliance buyers participation is on the rise. Traders are selling the spread between vintage 1999 and vintage 2000 EAs as a means of maximizing value, with both vintages being subject to the same flow control ratio next year. Compliance buyers are expected to enter the market over the next two months, although, with traders expecting a further surplus in 2000 prices are expected to remain depressed.

NOx Graph


MARKET NEWS:


NOx SIP Call Lawsuit Decision
On October 20, 2000, seven states: Ohio, Indiana, Michigan, Virginia, West Virginia, South Carolina, and Alabama, petitioned the Supreme Court to review the procedure the EPA used for determining NOx emissions caps under the SIP Call regulation. Apparently these States have turned to the Supreme Court believing they have exhausted all options with the D.C. Circuit Court of Appeals.

States to Miss SIP Call Deadline
It seems as though several states will miss the October 30th deadline for submitting their final plans to the EPA. In this case, the EPA can either force some of these states to reduce emissions under Section 126 of the Clean Air Act, impose a Federal Implementation Plan on those states not affected by Section 126, or it can extend the deadline past October 30th.

Quality Greenhouse Gas Redutions available:
Cantor Fitzgerald can assist risk managers in the creation of a portfolio of greenhouse gas reductions and offsets to address their exposure to potential restrictions in their ability to emit greenhouse gases.

For details call Carlton Bartels at 212-938-8700



Cantor Environmental Brokerage Staff and Phone Numbers...
Carlton Bartels, Managing Director New York GHG and All Products 212-938-8700
Josh Margolis, Senior Vice President San Francisco GHG and All Emissions 415-296-9359
Robin Langdon, Vice President San Francisco RTCs/ERCs/DERs 415-296-9495
Andy Kruger, Vice President Darien, CT ERCs/NOx EAs/DERs 203-662-3638
Jude Moussa, Associate New York SO2/NOx EAs 212-938-4250
Laurie Gage, Associate New York SO2/NOx EAs 212-938-4250
Christine Grandstaff, Associate Los Angeles RTCs/ERCs/DERs 949-597-0517
Lori Oshiro, Office Manager San Francisco All Emisisons 415-296-9573
Lauren Kisling, Broker's Assistant Darien, CT ERCs/NOx EAs/ DERs 203-662-3638
Sikina Jinnah, Broker's Assistant San Francisco All Emisisons 415-296-9575



Questions/Comments? E-mail Cantor Environmental Brokerage@cantor.com
© 2001 Cantor Fitzgerald Brokerage, L.P., All Rights Reserved.

© 2002 Cantor Environmental Brokerage, L.P., All Rights Reserved.
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