CME Group Inc. bought out its partners in GreenX Holdings LLC, including Goldman Sachs Group Inc. and ICAP Plc, for an unspecified price.
GreenX Holdings, an emissions-trading bourse, boosted its volumes by 21 percent in the first quarter to 106.9 million metric tons, compared with the three months through December, according to e-mailed data. The total represents 5.9 percent of the volume of EU carbon allowances and United Nations credits handled by ICE Futures Europe in London, the biggest exchange in the greenhouse-gas market.
CME, the world’s largest futures exchange owner, bought 100 percent of GreenX as ICE has gained ground in the crude-oil market. Carbon has grown to become the second-biggest European energy market by open interest after crude, exchange data show. Open interest is a measure of trading positions that have not been closed.
After the deal with GreenX, carbon traders will be able to offset margins held across CME’s energy contracts, including coal, said Allan Schoenberg, a CME spokesman in London. Schoenberg said CME was previously GreenX’s biggest shareholder, declining to provide details.
Clients will also get access to 63 clearing members instead of 16, Sara Stahl, managing director of global marketing at GreenX, said today by phone.
Tom Lewis, GreenX chief executive officer, will stay, she said. “For the time being, there will be no changes to any GreenX staff.”
CME Oil Volumes
Aggregate Brent crude trading volume on ICE, owned by IntercontinentalExchange Inc. in Atlanta, jumped 8.2 percent to a record 34.3 billion barrels in the three months ended March, compared with a year earlier, according to figures from the exchange. CME’s WTI aggregate volumes dropped 21 percent in the same period to 40.5 billion barrels.
On Feb. 21, CME and Oman Investment Fund said they will raise their respective stakes in the Dubai Mercantile Exchange to support expansion at the Middle East oil bourse.
GreenX was previously owned by a group of organizations also including Constellation Energy Group Inc., Credit Suisse Group Inc., Evolution Markets LLC, J.P. Ventures Energy Corp., Morgan Stanley, RNK Capital LLC, Marex Spectron Group Ltd., TFS Energy LLC, Tudor Investment Corp. and Vitol SA, according to a statement distributed by PR Newswire.