European Climate Exchange

United Kingdom

Contracts:

Indices

• ECX Emissions Morning Marker

A weighted average of all ECX CFI futures trades within 15 minute period from 10.00 –10.15 CET. Published shortly after 10.15 CET for the Nov 06, Dec 06, Dec 07 and Dec 08 contract months.

• ECX Emissions Index

A trade-weighted average of ECX CFI futures trades over the course of the trading day. Published shortly after 18.00 CET for the Nov 06, Dec 06, Dec 07 and Dec 08 contract months.

• ECX indices are used by the market as benchmarks but are not tradable
• Available on www.ecxeurope.com

Access to Futures and Options Market:

There are two ways to access the market:

• Become a Member of ECX CFI on ICE Futures ( www.theice.com ); or
• Order-Route as a customer of a Clearing Member on ICE Futures

Initial Margin:

The margin rates are reviewed on a quarterly basis by the clearinghouse LCH.Clearnet who acts as central counterparty to all trades.

Initial Margin Rates (per lot) As per December 2006

Outright €1800 (€1.80 per tonne)
Inter-month spread €1300 (€1.30 per tonne)

News:

NEWS RELEASE – Amsterdam / London 17 November 2006
Emissions Futures Contracts Reaches 100 Million Tonnes Milestone in Open Interest
ECX and ICE Futures see trading volumes rise in the expanding carbon market.

Open interest of the ICE ECX CFI Futures contracts traded on ICE Futures exceeded the 100 million tonnes mark for the first time on the 16 th November 2006 . During October, average daily trading volumes of ICE ECX CFI Futures averaged 2.3 million tonnes. Open interest is the total number of contracts that have not yet been exercised, expired, or fulfilled by delivery and is often looked at by traders and analysts to gauge the maturity of a market. The ICE ECX CFI Futures contract with the largest open interest position was the December 06 contract month with 43.7 million tonnes.

More than 70 leading businesses, including global companies such as Barclays, BP, Calyon, E.ON UK, Fortis, Morgan Stanley and Shell have signed up for membership to trade ECX products. In addition, several hundred clients can access the market daily via banks and brokers.

ECX is a member of the Climate Exchange Plc group of companies. Other member companies include the Chicago Climate Exchange (CCX). Climate Exchange Plc is listed on AIM on the London Stock Exchange.

Since launch of the ICE ECX CFI Futures contract in April 2005, ECX has become the dominant exchange-traded contract based on the EU Emissions Trading Scheme with approximately 80% of total exchange-traded volume. Trading volumes in ICE ECX CFI Futures contracts have increased by 400% year-on-year. Between January – mid November 2006, 380 million tonnes of CO2 EU allowances traded compared to 94 million tonnes throughout 2005. On 13 th October 2006 ICE Futures and ECX launched the ICE ECX CFI Options contract and 460,000 tonnes traded in its first month of activity.

Access to ICE Futures for the trading of ICE ECX CFI Futures and Options contracts can be secured by becoming an ICE Futures Member or by order-routing as a client of an ICE Futures Member. Currently, 70 Members have signed up to trade ECX products on their own account and on behalf of their clients.

ECX’s Chief Executive, Peter Koster , was thrilled, adding: “The past two years have shown ECX/ ICE Futures to be the most liquid marketplace to trade European emissions. Passing this new milestone has positioned ECX as the most robust and flexible platform in the carbon market.”

Fredrik Voss, Director of Market Development at ICE Futures, was equally pleased: “The growth of open interest shows carbon instruments strengthening their position in the commodities complex when one compares it to the more established commodity products. This growth will be a welcome piece of news to financial players looking for new markets to trade in which in turn will spur the growth of market depth and liquidity.”

Further information about the ECX CFI Contracts can be found at www.ecxeurope.com or www.theice.com.

Learn about the carbon market:

For those interested in attending introduction courses on the emissions market, ECX/ ICE Futures regularly offers an intensive two-day training course in conjunction with CEAG (Consilience Energy Advisory Group) in London. This course explains the regulatory framework and trading instruments on which commitments to cut greenhouse gases are based. Next course will take place on 25-26 January 2007. If you are interested to attend, please contact us at +44 (0)20 7265 3745 for more details.