October SO2 and NOx EA MPI Headlines
- SO2 EA MPI Up 1.20%
- NOx EA Prices Slip Even Further
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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.
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.
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.
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