GUIDELINES
In response to requests from clients and other market participants for sulfur
dioxide emissions allowance market index, Cantor Environmental Brokerage distributed a questionnaire
as part of our December 23, 1994 Price Run. We used this information to
help determine the guidelines for our Monthly Price Index (MPI)
The MPI will be based in equal parts on the following factors:
The average of the highest sulfur dioxide allowance bids (to buy) weighted
by allowance volume. Total volume will not exceed 1,500 sulfur dioxide allowances.
Prices will be extracted from Cantor Environmental Brokerage's current monthly price run.
The average of the lowest sulfur dioxide allowance offers (to sell) weighted
by allowance volume. Total volume will not exceed 1,500 sulfur dioxide allowances.
Prices will be extracted from Cantor Environmental Brokerage's current monthly price run.
The weighted average of actual trade prices determined from
trades consummated during the prior trading period that settle within the following
6 months*. The weighted average will be based on allowance volume, not to exceed
a weighted equivalent to 1,500 allowances regardless of trade size. Trades below
this mark will be included on a weighted basis.
Each component of the MPI will be calculated individually as defined above.
The average of these components represents the MPI. The MPI will be calculated
as described for all future price runs unless otherwise notified.
EXAMPLE:
| Year |
|
Best Prices
Bid to Buy |
|
($/Allowance)
Offer to Sell |
|
Maximum
Bid |
|
Volume Offered |
| 1995 |
|
$ 130.00 |
|
$ 139.00 |
|
1,000 |
|
500+ |
Allowances |
| 1995 |
|
$ 133.25 |
|
$ 140.00 |
|
2,000 |
|
500+ |
Allowances |
| 1995 |
|
|
|
$ 140.50 |
|
|
|
10,000 |
Allowances |
| 1995 |
|
|
|
$ 155.00 |
|
|
|
2,143 |
Allowances |
|
| |
|
Bid's |
|
Offers |
|
Trade's |
|
MPI |
| Price/Volume |
|
1,000 @ $130.00 |
|
500 @ $139.00 |
|
Not Listed ** |
|
|
| Price/Volume |
|
500 @ $133.25 |
|
500 @ $140.00 |
|
|
|
|
| Price/Volume |
|
|
|
500 @ $140.50 |
|
|
|
|
| Weighted Average |
|
$131.08 |
|
$139.83 |
|
$135.00 |
|
$135.20 |
|
| * |
A trading period, for purposes of the MPI, is defined as the period
beginning with the 25th day of the previous month and ending with the
24th day of the month in which the MPI is published. |
| ** |
Example does not use actual trade data. |
All Cantor Environmental Brokerage offices can be reached by calling 1-800-228-2955,
or by E-mail at Cantor Environmental [email protected]
|
