New York Mercantile Exchange (Nymex) is to launch a new emissions exchange with a number of banks, emissions brokers and a hedge fund. The new market, called Green Exchange will launch in Q1 2008.
Confirmed partners includes Evolution Markets, Morgan Stanley, Credit Suisse, JPMorgan, Merrill Lynch, Tudor Investment Corp., Icap and Constellation Energy. More European institutions are expected to be announced in the next week or so.
Nymex chairman Richard Schaeffer told FO Week that the partnership structure was designed to build liquidity quickly.
"When you have the people actually doing the trading and they’ve made commitments to actually put volume on a regulated exchange, it surely gives that exchange a much better jump start at building and...