BEST BIDS TO BUY	1999: 50 tons @ $ 625/ton 2000: 100 tons @ $ 750/ton
BEST OFFERS TO SELL	1999: 50 tons @ $ 875/ton 2000: 50 tons @ $1,025/ton 2000-02: 100+ tons @ $1,100/ton
RECENT TRADE PRICES	$ 710/ton (1999) $ 750/ton (1999) $ 765/ton (1999) $ 765/ton (1999) $ 750/ton (1999) $675/ton (1999) $ 880/ton (1999 - 01) $ 975/ton (2000) $ 925/ton (2000) $1,010/ton (2000) in chronological order
MARKET PRICE INDEX	1999 = $ 745/ton 2000 = $ 915/ton The Market Price Index (MPI) is derived by averaging the Best Bid, Best Offer, and Most Recent Trades.

NOx NEWS Happy 2000! The staff at Cantor Environmental Brokerage wish you the best for a happy, healthy, and productive new year! December 31, 1999 Marks Close of First NOx Allowance Compliance Year. With the strike of the clock on New Year’s Eve, we also witnessed the close of the first compliance period of the NOx Budget Program. The 1999 ozone season has ended. Budget Sources have worked to complete and file their final quarterly reports; and reconciliation has been completed, as required. Focus Shifts to Y2K Compliance. With the close of the holiday season and the ozone season itself, market participants have returned to their offices, sorted through their emails, voicemails, mail, etc., and begun to focus on compliance plans for the 2000 ozone season. While daily bids and offers for Y2K allowances existed throughout the later part of December 1999, the depth was quite thin. The end of the first week of January 2000, however, witnessed the beginning of a return to the “norm” where there was depth on the buy and sell side and two trades of Y2K allowances occurred. It is never too early to begin buying or selling allowances and many parties have begun to recognize this fact. While one strategy to pursue cost effective compliance includes the use of options, another is the use of “dollar cost averaging”. Trading allowances over time rather than all at once allows traders to take advantage of dollar cost averaging. Theoretically, doing so helps minimize the effect of price swings. A number of our clients are using this management tool to meet their trading goals. Please let us know how we can help you to better understand and implement your trading strategies.

How is the MPI Derived? The MPI, in $/ton, is derived by averaging the following: 1) the Best Bid - the highest price at which a buyer is willing to purchase at least 5 tons of NOx Allowances. 2) the Best Offer - the lowest price at which a seller is willing to sell at least 5 tons of NOx Allowances. 3) the Most Recent Trade - the price(s) at which NOx Allowances have been agreed to be transacted (NOTE: NOx Allowances have not yet been placed in Budget Sources' NATS Accounts, and thus trades cannot yet be "transacted". Until such time, the "Most Recent Trade" represents buyer(s) and seller(s) agreement(s) on price).

Questions? Like to Place an Order? Consider a Swap? Call Us at (800) 228-2955 (x6) Trade With the Cantor Environmental Brokerage Market Experts Cantor Environmental Brokerage has Facilitated ~ $2 Billion in Transactions Involving >50 millionNOx/SO2 Allowance, ERC, DER, & RTC & GHG Credits.