(BN) ICE’s Biggest Carbon Clients May Get 79% Fee Rebates



ICE's Biggest Carbon Clients May Get 79% Fee Rebates (Update1)
2011-01-18 18:06:14.166 GMT

(Adds RWE in third paragraph, comments in fourth.)

By Mathew Carr
Jan. 18 (Bloomberg) -- ICE Futures Europe, the biggest
exchange for carbon traders, said it agreed to rebates of as
much as 79 percent for some of its largest emissions clients.
Customers trading more than 25,000 contracts a month may
receive rebates of up to 2.75 euros ($3.68) on contracts with
fees of 3.50 euros starting Jan. 1 "to build liquidity," the
Atlanta-based company said today in a statement on its website.
RWE AG, Europe's biggest emitter, said July 23 that it
shifted some of its carbon trading to Germany's European Energy
Exchange, trimming volume handled by ICE. The EEX, the EU's
biggest bourse for power trading, cut fees by 10 percent last
year for emissions trades. The company, which offered carbon
contracts in June for delivery in 2013 and 2014, has been
gaining a bigger share of Europe's carbon market.
Traders will get rebates from ICE in three tiers as long as
they trade at least 5,000 contracts, or 5 million metric tons of
carbon dioxide a month, the statement said. Options traders
would be rebated under a separate program.
"As members' volumes increase, the per-contract fees that
they pay will fall," David Peniket, president and chief
operating officer of ICE Futures Europe, said in the statement.
"Targeting fee rebates like this is designed to build market
liquidity and promote transparency, which should benefit all
market participants."
ICE said it would waive the application fees for new
members in 2011. "Market participants who are not ICE Futures
Europe members are invited to become members of the exchange in
order to qualify for these rebates," according to the
statement. Annual fees would still apply.

For Related News and Information:
Emission market news NI ECREDITS <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
Sustainability, environmental indexes SEI <GO>

--Editors: Mike Anderson, Rob Verdonck.

To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or

To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net