Scramble to assess impact of MF Global bankruptcy on EU ETS
The impact of the European debt crisis on the carbon market hit a new level on Tuesday following the news that US-based broker-dealer MF Global had filed for bankruptcy the previous day.
While market participants were still trying to assess the precise impact of the broker's exposure to the carbon market, as well as its counterparty exposure within the EU emission trading system (EU ETS), those polled by ICIS Heren said that MF Global was a "reasonably big" player in the European emissions market.
Sources said the news had already contributed to lower volumes on Tuesday and was expected to drag down prices amid market nervousness and unforeseen losses incurred by those exposed to the bust broker.
Carbon exchange ICE notified the market that it had suspended the trading privileges of MF Global as well as participant clearing accounts until further notice and advised the bankrupt broker's customers to transfer positions to an alternative clearing member.
One market source reported parties had been allowed to sell out of their positions but not to take out new positions with MF Global.
No comments:
Post a Comment