BLUENEXT PRODUCTS

MARKIT BLUENEXT INDEX SERIES

BlueNext, the European environmental exchange, and Markit, the financial information service provider have formed a strategic partnership to create a range of indices and related products for the carbon and wider environmental markets.

DESIGN

•  The indices are designed by the Index Oversight Committee (IOC). The IOC gathers regularly to discuss the index  methodologies, but also to recommend new indices.
•  The IOC is co-chaired by Markit and BlueNext. Members of the IOC include carbon market participants, financial institutions and  asset managers (Bache Commodities, Citigroup, Deutsche Bank and Orbeo).
•  The first index to be launched is the Markit BlueNext EUA Spot Index.

KEY BENEFITS

•  The indices provide greater transparency and visibility of the overall environmental marketplace.
•  The indices create ideal environmental benchmarks that will facilitate the creation of structured products for the institutional and retail markets.

CALCULATION OF THE SPOT EUA INDEX

The Markit BlueNext EUA Spot Index fixing methodology (IOC approved).

The fixing qualifies EUA Spot transactions with a minimum size of 5 000 tons traded in the last 3 hours of the trading session (between 3pm and 6pm CET). Depending on the number of qualifying transactions, the fixing is calculated as follows:

•  If more than twenty qualifying transactions are recorded, the fixing is calculated as the volume weighted average price of the  last 20 qualifying transactions.
•  In between 5 and 20 recorded qualifying transactions, the fixing is calculated as the volume weighted average price of all  qualifying transactions.
•  If fewer than 5 qualifying transactions are recorded, the fixing is calculated as the simple average of all qualifying transactions  plus the closing price.

The fixing is rounded to two decimals.

For more information on Markit BlueNext Indices, click here.