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Carbon Emission trading
Are there any idiosyncracies I need to be aware of in risk managing a start up emissions trading desk?Anticipate trading spot, forwards, futures, swaps a- all physically settled. Any advice appreciated.Jon
Carbon Emission trading
Physically settled swaps? How do they work?QuoteOriginally posted by: jonAre there any idiosyncracies I need to be aware of in risk managing a start up emissions trading desk?Anticipate trading spot, forwards, futures, swaps a- all physically settled. Any advice appreciated.Jon
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- miltenpoint
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Carbon Emission trading
You need to fully understand the regulatory risk attached to Emissions. After all, unlike any other financial instrument or asset, these have no intrinsic value only compliance value. You need to fully understand differences between Emissions markets (eg EUA, CER, RGGI) and appreciate the dynamics of their forward curves. Also, appreciate the ramification of Kyoto collapsing post 2012 (to be decided in December 2009).