The European Energy Exchange AG and the international derivatives exchange Eurex are to cooperate in emissions trading.

As part of this cooperation, EEX and Eurex will offer trading in emission rights through the Eurex system, creating a marketplace for CO2 products, which takes the trading, clearing and settlement standards of the financial markets fully into account, the firms say.

Both partners believe that the cooperation will increase the market’s liquidity and efficiency. By connecting their distribution network, the firms will address more than 600 trading firms, resulting in the largest international network for emissions trading.

To start with, the European Union Allowance futures already listed on the EEX will be available for trading on the common platform from December 5. Certified Emission Reductions futures will follow at the beginning of 2008. Moreover, EUA spot contracts and options on EUA futures will be offered on the platform.

E.ON Sales &Trading, Fortis Bank Global Markets and RWE Trading have already joined as market makers which will place buy and sell orders in the system on a daily base, thereby ensuring liquidity. Additional market makers are expected to join by the launch of the cooperation in December. The clearing houses of the two exchanges, European Commodity Clearing AG and Eurex Clearing AG, will cooperate in settling transactions.

Maik Neubauer, member of the EEX executive board and responsible for the cooperation project, said, “This cooperation in the rapidly growing emission rights segment is part of the implementation of our internationalization strategy. Liquid emissions trading is a significant component of our product portfolio.”

Peter Reitz, Eurex executive board member responsible for product and market development, said: “Through our cooperation, we are combining our respective strengths and bringing the European energy industry and the leading players on the international financial markets together on one platform.”