not the amsterdam apx
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NYSE Joins With APX for Environmental-Trade Venture (Update1)
2010-09-07 12:40:41.63 GMT
(Adds NYSE Euronext comment in third paragraph.)
By Mathew Carr and Lars Paulsson
Sept. 7 (Bloomberg) -- NYSE Euronext, the biggest operator
of U.S. stock exchanges, agreed to form a venture with APX Inc.
for a global expansion of its environment-focused trading.
The New York-based company will be majority owner of a new
entity called NYSE Blue after contributing its 60 percent stake
in Paris-based BlueNext, the largest exchange for spot trading
of European Union carbon dioxide allowances, NYSE said today in
an e-mailed statement. APX, with offices in New York and San
Jose, handles transactions and settlements in power and
environmental markets.
APX, with shareholders including Goldman Sachs Group Inc.,
MissionPoint Capital Partners and ONSET Venture, will put up
their shares in return for a minority stake in NYSE Blue. APX
Chairman Brian Storms will be chief executive officer for the
venture, which aims to manage "new types of business risks"
related to trading energy, renewables, CO2 allowances and water,
NYSE CEO Duncan Niederauer said in the statement. Financial
terms of the venture weren't disclosed.
"Our listed companies and markets customers increasingly
need innovative tools and trading instruments," he said.
NYSE Euronext, formed with the 2007 takeover of Euronext,
will be challenging market leaders Intercontinental Exchange
Inc. and CME Group Inc.'s New York Mercantile Exchange for a
bigger share of energy trading.
BlueNext volumes of spot EU carbon dioxide allowances
dropped 30 percent in the six months through June this year to
194 million metric tons, compared with the six months through
December 2009, as the London-based European Climate Exchange,
acquired for 395 million pounds ($606 million) in July by
Intercontinental Exchange, boosted its share of the spot market.
Main Rival
Nasdaq OMX Group Inc., NYSE's main rival in U.S. equity
trading, completed its purchase of Nord Pool ASA, Europe's
biggest power exchange, in May. Exchanges had 18 percent of the
region's power trading in 2009, down from 29 percent a year
earlier, according to London-based Prospex Research Ltd.
Carbon trading volumes jumped 80 percent to a record last
year, according to World Bank figures published in May. Still,
the value of transactions rose 6.4 percent to $143.7 billion as
the recession depressed prices. The European Union runs the
world's largest cap-and-trade program for emissions allowances,
followed by the United Nations offset system. U.S. lawmakers are
struggling to pass climate-protection legislation after the
House called for a cap-and-trade system last year.
Failure in Copenhagen
While more than 190 envoys failed at last year's climate
talks in Copenhagen to agree on a climate change treaty,
governments around the world are considering climate-protection
measures from renewable energy standards through cap-and-trade
programs, Neiderauer said.
NYSE Euronext handled 1.81 million commodities contracts in
August, more than twice the amount a year earlier, the bourse
said in an e-mailed statement earlier today. Daily volumes
averaged 82,000 contracts, compared with 43,000 a year earlier.
Total commodity volume in the first eight months of the year
reached almost 10.44 million contracts, 33 percent more than a
year earlier.
APX helps create and trade renewable-energy certificates in
North America. The transaction is expected to close by the end
of 2010, the statement said. Goldman Sachs advised APX, it said.
For Related News and Information:
Emissions Trading News NI ENVMARKET <GO>
Today's top power stories PTOP <GO>
News on European power markets TNI EUROPE PWRMARKET <GO>
European power prices EPWR <GO>
--Editors: Mike Anderson, Jonas Bergman.
To contact the reporters on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net;
Lars Paulsson in London at +44-20-7673-2759 or
lpaulsson@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
