BLUENEXT PRODUCTS

TRADING FACILITIES

Since May 18th, 2009 BlueNext has made two types of implied prices available – Spreads and Strips. These implied prices allow the trading of 2 or more products with a simple click. For our members who can see the order book, these implied prices are shown in yellow (the outright prices are shown in red). There are two types:

1.   Spreads between CER and EUA products on the spot and futures markets

The implied spread is the difference between the best CER price and the best EUA price in the order book:

•  the bid spread is the difference between the bid CER and the ask EUA.
•  the ask spread is the difference between the ask CER and the bid EUA.

There’s only one implied spread on each side (bid and ask) as the spread is calculated for the best limits in the underlying order books. When an implied spread is dealt, the corresponding legs disappear in the EUA and CER order books.

On the spot market, the pre-order check and control system will work as normal. If a member wishes to lift a bid spread (sell CER, buy EUA), he will need to have the relevant amount of CERs and the appropriate cash to buy the EUAs.

On the futures market, BNF CER Dec12 and BNF EUA Dec12 implied prices are tradable

2.   Strips on Futures EUA and CER contracts

The strip is the simultaneous buying or selling of all EUA or CER futures contracts in the order book. Hence, when a member hits a bid strip, they are selling the Dec12 contract. The strip price is the average of all the vintages best prices on one side of the market (bid or ask). The quantity given is the minimum of the best limits.

PRODUCT NAMES

* n is the vintage year, e.g. for the CER/EUA Dec12 spread, the short code is CER/EUA Z12 (i)